Multiple Choice
Use the following to answer questions :
Figure: Circular-Flow Model
-(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in consumer spending, which of the following is likely to happen?
A) an increase in the nominal GDP
B) a decrease in the nominal GDP
C) an increase in the unemployment rate
D) a decrease in the inflation rate
Correct Answer:

Verified
Correct Answer:
Verified
Q22: Suppose a consumer buys a Perfect Pizza
Q60: Disposable income equals:<br>A) income plus government transfers
Q164: In the circular-flow diagram, the places where
Q366: Which of the following is consumption?<br>A)a new
Q367: The PPI and the consumer price index
Q369: Use the following to answer question :
Q372: A decrease in inventories is:<br>A)a fall in
Q374: Use the following to answer questions :<br>Table:
Q375: The circular-flow diagram illustrates all of the
Q376: In the consumer price index of the