GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern.One of these measures is
A)the annual precipitation rate.
B)the growth of the money supply.
C)the inflation rate.
D)the unemployment rate.

Question

Quizplus · Accepted Answer

The unemployment rate tends to rise and fall along with changes in economic activity. When the economy is strong, jobs are more abundant and the unemployment rate decreases, while in times of recession, jobs are scarce, and the unemployment rate increases. This trend closely tracks with changes in GDP, making the unemployment rate a useful indicator of economic health. The other options, annual precipitation rate, growth of the money supply, and inflation rate, are not necessarily tied to changes in economic activity and may behave differently in response to economic fluctuations.

GDP Tends to Rise and Fall During Economic Fluctuations but Other