Suppose Country Y gets hit by a hurricane that devastates the country. How would the circular flow model be affected by this disaster? The flow from households to firms will (increase/decrease) because The flow from firms to households will (increase/decrease) because

Suppose Country Y gets hit by a hurricane that devastates the country. How would the circular flow model be affected by this disaster? The flow from households to firms will (increase/decrease) because The flow from firms to households will (increase/decrease) because

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Country X
Country Y
Country Z
1 YEAR
AGO
1 YEAR
1 YEAR
AGO
INDICATOR
NOW
NOW
NOW
AGO
Unemployment rate
7.5%
5.6%
7.9%
9.3%
5.5%
5.4%
GDP growth rate
5.1%
1.9%
0.3%
-1.2%
3.5%
3.7%
Inflation rate
1.1%
0.2%
2.1%
0.0%
2.4%
2.3%
6. Suppose Country Y gets hit by a hurricane that devastates the country. How would the
circular flow model be affected by this disaster?
The flow from households to firms will (increase/decrease) because
The flow from firms to households will (increase/decrease) because

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