Scenario: To balance the budget, the federal Graph the Condition of the Economy government cuts Social Security payments by 10 percent and federal aid to education by 20 percent. Price level 1 1 Real GDP 1 1 Unemployment 1 1 Scenario: New environmental standards raise Graph the Condition of the Economy the average cost of cars and trucks 5 percent. Price level 1 1 Real GDP 1 4 Unemployment 1 1 Scenario: During a long, slow recovery from a Graph the Condition of the Economy recession, consumers postponed major purchases. Suddenly, they begin to buy cars, refrigerators, televisions and furnaces to replace their failing models. Price level 1 1 - Real GDP 1 1 - Unemployment 1