Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs. Which pair of GDP growth rates and unemployment rates is most realistic?
A) -4 percent, 2 percent
B) -2 percent, 18 percent
C) 1 percent, 7 percent
D) 5 percent, 0 percent

Question

Quizplus · Accepted Answer

C) 1 percent GDP growth and 7 percent unemployment is the most realistic scenario. Slow GDP growth often correlates with moderate to high unemployment rates, as economic expansion at this pace may not be strong enough to significantly reduce unemployment.

Below Are Pairs of GDP Growth Rates and Unemployment Rates