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


Definitions:

Retail Sales

The selling of goods and services directly to consumers for personal use.

Transactions

Financial activities involving exchanges of value between two parties, often recorded and tracked in accounting systems.

Paperwork

The written documents or records, especially those associated with transactions, processes, or administration.

Cash Receipts Report

A financial document summarizing all cash inflows, or money received, by a business during a specified period.

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