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 taxes, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Body Fluids Osmolality
A measure of the solute concentration in body fluids, important for maintaining proper osmotic balance across cell membranes.
Buffering
The process by which pH is regulated and maintained within living organisms, preventing harmful shifts in acidity or alkalinity.
Ammonia
A compound of nitrogen and hydrogen (NH3) that is a colorless gas with a pungent smell, used widely in industry and produced naturally in the body as a byproduct of amino acid metabolism.
Bicarbonate Ions
A negatively charged ion that acts as a significant component of the bicarbonate buffer system, helping to maintain pH balance in blood and other bodily fluids.
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