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question 144

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Use the following to answer questions :
Figure: Circular-Flow Model 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 government spending, which of the following is likely to happen? A) an increase in the nominal GDP B) a decrease in the real GDP C) an increase in the unemployment rate D) a decrease in the inflation rate
-(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 government spending, which of the following is likely to happen?


Definitions:

Amplification

In psychology, the process of increasing the intensity or perceived importance of thoughts, feelings, or behaviors.

Free Association

A psychoanalytic process where a patient speaks freely to expose thoughts and feelings that are hidden in their unconscious.

Individuation

The process by which an individual becomes distinct and separate, psychologically or socially, often in terms of identity development.

Psyche

The human soul, mind, or spirit, often used to denote the psychological components of a person, including thoughts, feelings, and consciousness.

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