Use the following to answer questions:
Figure: Fiscal Policy I 
-(Figure: Fiscal Policy I) Look at the figure Fiscal Policy I. Suppose that this economy is in equilibrium at E2. If there is a decrease in government purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
United States
A country located in North America, consisting of 50 states and a federal district, known for its significant influence in global economics, politics, and culture.
Market Participant
An entity, such as an individual or company, that engages in the buying, selling, or exchange of goods, services, or financial instruments within a market.
Provincial Law
Legal rules and regulations enacted by the legislative body of a province or territory, governing matters within its jurisdiction.
Federal Law
Refers to the body of law created by the national government of a country, encompassing statutes, regulations, and case law that apply across the entire nation.
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