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Use the following to answer questions: Use the following to answer questions:   -(Figure 7-1: Circular-Flow Model)  Use Figure 7-1: 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 exports, holding everything else constant, which outcome is likely to occur? A)  a decrease in the nominal GDP B)  an increase in the real GDP C)  a decrease in the unemployment rate D)  an increase in the inflation rate
-(Figure 7-1: Circular-Flow Model) Use Figure 7-1: 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 exports, holding everything else constant, which outcome is likely to occur?


A) a decrease in the nominal GDP
B) an increase in the real GDP
C) a decrease in the unemployment rate
D) an increase in the inflation rate

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