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 an increase in government transfers_____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Bureaucracy
A system of governance or organization characterized by standardized procedures, hierarchical structure, and formal rules.
Max Weber
A German sociologist, philosopher, and political economist whose ideas influenced social theory and social research, known for his works on bureaucracy and organizational structures.
Specialisation and Division of Labour
The organizational strategy of breaking down the production process into smaller tasks, with each worker or group of workers specializing in a particular element, leading to increased efficiency and productivity.
Mathematical Techniques
Various methods and tools derived from mathematics used to solve problems, analyze data, or model and predict outcomes.
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