Use the Following to Answer Questions

question 101

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 investment 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

Understand the composition and calculation of the labor force and the unemployment rate.

Identify different types of unemployment and their causes.

Appreciate the complexities and multiple factors influencing economic cycles and stability.

Understand the significance and application of positive and negative reinforcement in the workplace.

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Definitions:

Shareholder Votes

The process by which shareholders exercise their right to make decisions on corporate matters, typically exercised during annual general meetings.

Board of Directors

A group of individuals elected by shareholders to oversee the management and governance of a corporation.

Strategic Benefits

Advantages gained by a business that help it achieve its organizational goals, often through improved competitiveness or market positioning.

Acquisition

The process of acquiring control of another company or asset.