Use the following to answer questions: 
-(Figure: Fiscal Policy I) Refer to Figure: Fiscal Policy I. Suppose that this economy is in equilibrium at E1. If there is a decrease in taxes, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Small States
Countries or regions with relatively low population and/or land area, often with limited economic or political power on the global stage.
Northern States
Refers to those states in the United States located in the North, historically known for their opposition to slavery during the Civil War era.
Southern States
States located in the southern region of the United States, often characterized by unique historical, cultural, and social traits.
Articles of Confederation
The initial agreement between the 13 American states that served as the United States' first constitution, establishing a confederation of sovereign states with a weak central government.
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