Use the Following to Answer Questions

question 144

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 an increase in government spending, which of the following is likely to happen?

• 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:

Electronically Submit

The process of sending or filing documents using electronic means such as email or online forms.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in Gross Domestic Product (GDP).

Global Trade Flows

The movement of goods and services across international borders, reflecting the interconnectedness of global economies.

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of illness or the maintenance of health.