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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 purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Stress
The body's response to any demand or challenge, which can be physical, mental, or emotional.
Defensive Coping Strategies
Psychological tactics employed to protect oneself from stress, anxiety, or emotional pain, often by avoiding reality.
Appraise
To assess the value, quality, or significance of something, often for the purpose of making a decision.
Stressful
Relating to or causing stress, which is a physical or psychological response to demands or pressures.
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