Use the following to answer questions: 
-(Figure: Fiscal Policy II) Refer to Figure: Fiscal Policy II. Suppose that this economy is in equilibrium at E2. If there is a decrease in government transfers, _____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.
Definitions:
Price Discrimination
A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider to different groups of consumers.
Monopolist
An economic agent (individual or company) that is the sole supplier of a particular commodity or service, controlling the market.
Market
A venue or system where buyers and sellers interact to trade goods, services, or financial instruments, determining prices through supply and demand.
Inverse Demand Function
A mathematical model describing the relationship between the price of a good and the quantity demanded, typically showing how price can affect demand levels.
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