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.
Definitions:
Affirmative Action
Policies or measures that favor individuals belonging to groups known to have been discriminated against previously, often related to education and employment.
Future Sum
The amount of money or value to be received or paid at a specified date in the future.
Interest Rate
The fee, represented as a fraction of the initial sum, that a creditor levies on a debtor for asset utilization.
Interest Rates
A borrower pays this rate, calculated as a percentage of the principle, to a lender in exchange for the use of assets.
Q5: (Figure: Short-Run Determination of the Interest Rate)
Q28: Suppose the banking system does NOT hold
Q70: Suppose that a bank receives a $5,000
Q75: Near-moneys are:<br>A) paper money.<br>B) fiat money.<br>C) highly
Q75: (Figure: Changes in the Money Supply) Refer
Q78: When the economy is in a recessionary
Q87: To expand the money supply, the Federal
Q118: Which curve is easiest to shift with
Q152: (Figure: A Money Market) Refer to Figure:
Q238: Between 1970 and the present, research comparing