If the growth rate of GDP is above its historical average, then there is a tendency for the unemployment rate to:
A) fall to zero.
B) rise.
C) fall.
D) stabilize.

Question

Quizplus · Accepted Answer

When the growth rate of GDP is higher than the historical average, it means that the economy is doing well and more businesses are operating, leading to an increase in demand for labor. As a result, the unemployment rate tends to fall because more people are able to find jobs.

If the Growth Rate of GDP Is Above Its Historical