Use the Following to Answer Questions

question 139

Multiple Choice

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 government spending, holding everything else constant, which outcome is likely to occur?

• 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

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Definitions:

Ohio Congressman

A member of the United States House of Representatives who represents a congressional district in the state of Ohio.

Creole

Describes a person of mixed European and black descent, especially in the Caribbean, or the culture and language that has evolved from the blending of these groups.

Henry Brown

Can refer to Henry "Box" Brown, an African American slave who famously escaped to freedom by mailing himself in a wooden crate to abolitionists in Philadelphia in 1849.

Nickname

A familiar or humorous name given to a person or thing instead of or in addition to the real name.