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:
Retroactive Promotions
The act of granting a promotion or benefits to an employee effective from a date in the past.
Equal Pay Act
A law aimed at abolishing wage disparity based on sex by ensuring equal pay for equal work among men and women.
Seniority System
A system in which those who have worked longest for an employer are first in line for promotions, salary increases, and other benefits, and are last to be laid off if the workforce must be reduced.
Compensatory Damages
Compensatory Damages are monetary awards given to individuals to compensate for actual loss, damage, or injury, aimed at restoring the injured party to their original position.
Q13: The short-run aggregate supply curve is positively
Q19: If the Federal Reserve uses expansionary monetary
Q57: In a simple, closed economy (no government
Q132: The demand curve for money will shift
Q203: Stabilization policies have:<br>A) not reduced the effects
Q222: A sale of Treasury bills by the
Q231: (Figure: Policy Alternatives) Refer to Figure: Policy
Q240: The aggregate demand curve shows the relationship
Q269: The demand for money in Japan is
Q287: (Figure: Output Gap) Refer to Figure: Output