Use the following to answer questions: 
-(Figure: Fiscal Policy II) Refer to Figure: Fiscal Policy II. Suppose that this economy is in equilibrium at E1. If there is a decrease in government transfers, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Aggregate Outputs
The total amount of goods and services produced in an economy over a specific time period.
Agricultural Subsidies
Financial assistance from government to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.
Export Income
Revenue generated by a country or company from selling goods and services to other countries.
Debt Forgiveness
The cancellation or reduction of the principal amount owed on debt by a creditor, reducing the financial burden on the debtor.
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