Unlike the school of Classical economics, the Keynesian school of economics supports an active involvement of government in the economy. Keynesians believe that the aggregate supply curve is horizontal, which means that increasing the aggregate demand curve through economic policies will lead to which of the following?

a.

An increase in real GDP and inflation

b.

An increase in real GDP with no change in the price level

c.

A decrease in inflation and an increase in real GDP

d.

An increase in inflation with no change in real GDP