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 a decrease in consumer spending, which of the following is likely to happen?
A) an increase in the nominal GDP
B) an increase in the real GDP
C) an increase in the unemployment rate
D) an increase in the inflation rate
Correct Answer:

Verified
Correct Answer:
Verified
Q140: Real GDP tends to understate our economic
Q241: According to the circular-flow diagram, which of
Q242: The consumer price index reflects:<br>A)changes in the
Q243: The GDP deflator for a given year
Q244: Use the following to answer questions :<br>Table:
Q247: Use the following to answer questions :<br>Table:
Q248: Which of the following transactions is included
Q249: Use the following to answer questions :
Q250: Use the following to answer questions:<br>Table: Real
Q251: The scale most often used to compare