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 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:
Authorization
The process of giving someone the right or power to do something, often through a formal or legal document.
Union
An organization formed by workers to protect their rights, improve working conditions, and negotiate with employers on wages and other employment terms.
Strike Activity
Actions taken by workers, typically involving stopping work, to protest working conditions or other labor issues.
WWI
World War I, a global conflict that lasted from 1914 to 1918, involving many of the world's great powers, organized into two opposing alliances: the Allies and the Central Powers.
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