Use the Following to Answer Questions

question 364

Multiple Choice

Use the following to answer questions :
Figure: Circular-Flow Model
-(Figure: Circular-Flow Model) Look at the figure 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, which of the following is likely to happen?

• 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

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Definitions:

HR Managers

Professionals who oversee and manage an organization's Human Resources department, responsible for policies, procedures, and programs related to employees.

Labour Supply

The total hours that workers in an economy are willing to work at a given real wage rate.

Strategy Implementation

The execution phase where strategies and plans are put into action as a part of the strategic management process to achieve organizational goals.

Performance Management

A systematic approach to improving individual and team activity and outcomes through setting performance standards and providing regular feedback.