Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs. Which of the following pairs of GDP growth rates and unemployment rates is most realistic?
A)6 percent, 0 percent
B)3 percent, 20 percent
C)-1 percent, 6 percent
D)-3 percent, 2 percent

Question

Quizplus · Accepted Answer

A GDP growth rate of -1 percent with an unemployment rate of 6 percent is realistic because negative GDP growth can be associated with moderate unemployment, reflecting a sluggish economy.

Below Are Pairs of GDP Growth Rates and Unemployment Rates