Use the following to answer questions: 
-(Figure: Fiscal Policy I) Refer to Figure: Fiscal Policy I. Suppose that this economy is in equilibrium at E2. If there is a decrease in government purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Contingent Liabilities
Potential obligations that may arise in the future due to past events, the occurrence and amount of which are uncertain.
Probable
A term used to describe something that is likely to occur or is likely true.
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