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 a decrease in government purchases, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
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A defense mechanism in which an individual refuses to accept reality or facts, thereby avoiding dealing with painful feelings or events.
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Involve the difficulties and obstacles companies face while trying to gain a competitive edge and outperform their rivals in the market.
Talented People
Individuals possessing exceptional abilities, skills, or knowledge that contribute significantly to their fields of activity or organizational goals.
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The process by which individuals or groups are encouraged and enabled to achieve greater capabilities or achieve new levels of performance.
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