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 an increase in government transfers_____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Rationalization
The process of offering a logical, reasonable explanation or justification for behaviors or decisions, often as a way of making them appear more acceptable or appropriate.
Efficient
Efficient describes achieving maximum productivity with minimum wasted effort or expense, often relating to the optimal use of resources to obtain a desired outcome.
Bureaucratic Organization
A structured administrative system governing any large institution, characterized by fixed rules, a hierarchy of authority, and a detailed division of labor.
Bouncers
Security personnel employed at venues like bars, nightclubs, or concerts to ensure safety, enforce rules, and manage entry.
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