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:
Functional Currency
The currency of the primary economic environment in which an entity operates and generates cash flows.
Goods Sold
The total quantity or value of products that have been purchased by customers within a given period.
Accounting Exposure
The risk that a company's financial statements can be affected by changes in exchange rates, influencing the reported earnings and financial position.
Apparent Gain
A perceived increase in value or profit that might not reflect the actual financial condition or performance.
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