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 an increase in government purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Employment-At-Will
A legal doctrine stating that an employer can terminate an employee at any time without any reason, as long as the reason is not illegal, and vice versa for the employee.
Bona Fide
Genuine, real, or conducted in good faith without any intention to deceive.
Collective Bargaining
The process in which labor unions and employers negotiate the terms of employment, including wages, hours, and working conditions.
Termination
The process of ending an employee's contract or employment with an organization, possibly due to various reasons such as redundancy or misconduct.
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