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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
Correct Answer:
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Q21: The total income of households after taxes
Q23: Use the following to answer questions :
Figure:
Q24: Use the following to answer questions :
Figure:
Q25: Stock in a company is:
A)a share of
Q27: A bond is:
A)a share of ownership of
Q29: Use the following to answer questions :
Figure:
Q30: Which of the following would accurately characterize
Q31: Use the following to answer questions :
Figure:
Q32: Use the following to answer questions :
Figure:
Q34: Private savings is equal to:
A) disposable income
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