The relationship between output growth and unemployment depends on the state of the economy.

Question

Quizplus · Accepted Answer

The relationship between output growth and unemployment is not always constant and can vary based on the state of the economy. For example, during periods of economic expansion, output growth may be positively correlated with unemployment rates as businesses increase production and hire more workers. However, during economic recessions, output growth may be negatively correlated with unemployment rates as businesses cut production and lay off workers to reduce costs. Therefore, the relationship between output growth and unemployment is not always fixed and can depend on the state of the economy.

The Relationship Between Output Growth and Unemployment Depends on the State