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) , which of the following is likely to happen if there is a decrease in imports?
A) an increase in the nominal GDP
B) a decrease in the nominal GDP
C) an increase in the unemployment rate
D) an increase in the nominal GDP, a decrease in the nominal GDP, and an increase in the unemployment rate
Correct Answer:

Verified
Correct Answer:
Verified
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