Use the Following to Answer Questions

question 191

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

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

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Definitions:

Norms

Shared beliefs or rules within a group about how members should behave in a given context, which help to guide and regulate individual behavior and promote group cohesion.

Injunctive Norms

Socially accepted rules or standards that dictate the behaviors that are approved or disapproved of within a society or group.

Evaluative Component

Part of an attitude that involves making a judgment about the goodness or badness of an object, person, or event.

Busy New York City Subway

Busy New York City Subway describes the condition of New York City's subway system, often characterized by high passenger traffic and congestion.