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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 a decrease in exports, holding everything else constant, which outcome is likely to occur? A)  a decrease in the nominal GDP B)  an increase in the real GDP C)  a decrease in the unemployment rate D)  an increase 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 a decrease in exports, holding everything else constant, which outcome is likely to occur?


Definitions:

Majority Rule

A decision-making principle where the preferences of more than half of the members of a group determine the decision made by that group.

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an incorrect or deviant decision-making outcome.

Cohesive Groups

Cohesive groups are characterized by strong bonds and a sense of unity among members, often leading to higher levels of group satisfaction and effectiveness.

Group Consensus

A general agreement reached by a group as a whole, where most members support the decision even if it's not their first choice.

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