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 an increase in government purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Imprinting
A form of learning occurring at a particular life stage that is rapid and apparently independent of the consequences of behavior.
Symbolic Thinking
The ability to use symbols, language, or other objects to represent and understand abstract concepts.
Egocentrism
A cognitive trait that causes individuals to interpret the world solely from their own perspective, often neglecting others' viewpoints.
Concrete Operational
A stage in Piaget's theory of cognitive development where children aged 7 to 11 years are able to think logically about concrete events and understand the concept of conservation.
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