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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.
Anxious and Agitated
Feeling nervous, worried, or uneasy, combined with an inability to stay still or calm.
Acknowledge Reality
The act of recognizing and accepting the true nature of a situation or one's own experiences without denial or avoidance.
Verbal Communication
The process of sharing information, thoughts, or feelings using words, either spoken or written.
Safe Environment
An environment that is secure from danger and enables individuals to live or work without fear of harm or injury.
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