Use the Following to Answer Questions

question 24

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 an increase in government spending, holding everything else constant, which outcome is likely to occur?

• 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

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Definitions:

Freedpeople

Former slaves who were emancipated during and after the American Civil War.

Reconstruction Era

The period from 1865 to 1877 following the Civil War, focused on rebuilding the United States and integrating formerly enslaved people into society.

Free Labor System

An economic system where workers are not forced or coerced into labor but are paid for their work and can choose their employment.

White Supremacist Organizations

Groups that advocate for the superiority of white people and often seek to promote racist ideologies.