Use the following to answer questions:
Figure: Fiscal Policy II 
-(Figure: Fiscal Policy II) Look at the figure Fiscal Policy II. Suppose that this economy is in equilibrium at E1. If there is a decrease in government transfers, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Basic Visual Information
The fundamental elements of what the eye perceives, such as color, shape, boundaries, movement, and spatial relationships.
Luminance
A measure of the intensity of light emitted from a surface per unit area in a given direction, which is used to describe the perceived brightness of an object.
Olfactory System
The sensory system responsible for smell, starting from the nasal cavity to the olfactory cortex in the brain.
Limbic System
An intricate network of nerves and pathways in the brain that regulates instinct and emotional state, governing fundamental emotions like fear, pleasure, and anger as well as primal impulses such as the need for food, sexual activity, domination, and nurturing offspring.
Q5: Money that the government has ordered to
Q7: The money multiplier and the required reserve
Q98: (Table: Investment Projects) Look at the table
Q121: The Federal Reserve reports on two main
Q228: The largest monetary aggregate is:<br>A)M1, because it
Q314: The money multiplier is equal to:<br>A)1 divided
Q345: (Scenario: Monetary Base and Money Supply) Look
Q345: Because bonds are more standardized than loans,
Q346: Automatic stabilizers are government spending and taxation
Q404: Suppose that initially a bank has excess