Use the Following to Answer Questions

question 364

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 investment 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

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