During periods of poor economic performance, real GDP
A) declines and unemployment rises.
B) declines and unemployment declines.
C) declines but unemployment typically does not change.
D) is unchanged but unemployment rises sharply.

Question

Quizplus · Accepted Answer

During periods of poor economic performance, real GDP declines as businesses produce less and consumers spend less, leading to a rise in unemployment as businesses lay off workers.

During Periods of Poor Economic Performance, Real GDP