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:
Transfer Prices
Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.
Decentralized Units
Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.
Investment Centers
Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.
Profit Centers
Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.
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