Use the following to answer questions: 
-(Figure: Fiscal Policy II) Refer to Figure: Fiscal Policy II. Suppose that this economy is in equilibrium at E2. 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:
Oxytocin
A hormone and neurotransmitter often associated with social behaviors, such as bonding, trust, and empathy.
Physical Pain
A distressing feeling often caused by intense or damaging stimuli, experienced somewhere in the body.
Proximity
The physical nearness of others, which is a major factor determining who we form relationships with.
Vending Machine
A machine that dispenses items such as snacks, beverages, or other products to consumers, typically after a payment has been made.
Q3: Money is any asset that:<br>A) the government
Q13: If long-term interest rates are 8% and
Q22: If real GDP is $1,000 billion and
Q22: As an inflationary gap self-corrects, the equilibrium
Q43: In a simple, closed economy (no government
Q44: The narrowest definition of money does NOT
Q72: The economy is in short-run macroeconomic equilibrium
Q122: In the long run, the aggregate price
Q155: The short-run aggregate supply curve is:<br>A) upward
Q165: Figure: Short-Run and Long-Run Effects of Monetary