After the recession of 2007-2009,the unemployment rate peaked at 10.1 percent in October 2009.23 months later,it had
A) dropped by 50 percent.
B) declined by only 1 percentage point.
C) remained at 10.1 percent.
D) fallen to the natural rate of unemployment.

Question

Quizplus · Accepted Answer

The question provides no information on the exact level of the unemployment rate 23 months after the peak in October 2009, but it implies that it had declined somewhat. Given that option A (dropped by 50 percent) would mean a decline to 5.05 percent, which was not achieved until May 2016, this option can be ruled out. Option C (remained at 10.1 percent) would suggest a complete lack of improvement in almost two years, which seems unlikely given the nature of economic recoveries. Option D (fallen to the natural rate of unemployment) is also unlikely, as the natural rate of unemployment is not a fixed number and varies over time depending on structural factors. Therefore, option B (declined by only one percentage point) is the best choice, as it implies a slow and gradual improvement in the labor market.

After the Recession of 2007-2009,the Unemployment Rate Peaked at 10