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Use the following to answer questions: 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 exports, holding everything else constant, which outcome is likely to occur? A)  a decrease in the nominal GDP B)  a decrease in the real GDP C)  a decrease in the unemployment rate D)  a decrease in the inflation rate
-(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 exports, holding everything else constant, which outcome is likely to occur?


Definitions:

Antitrust Law

Laws designed to promote competition and prevent monopolies by regulating corporate practices that restrict trade.

Product Price

The amount of money charged for a product, determined by costs, market demand, and competition.

Natural Monopoly

A market condition where a single firm can supply the entire market at a lower cost than any combination of two or more firms due to economies of scale.

Social Regulation

Government-imposed regulations aimed at improving health, safety, and the welfare of the public, covering issues like pollution and workplace safety.

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