The unemployment rate tends to move inversely with real GDP growth in an economy.

Name: The unemployment rate tends to move inversely with real GDP growth in an economy.
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When real GDP grows, businesses typically hire more workers, thereby decreasing the unemployment rate. Conversely, during economic downturns or recessions, economic activity slows, businesses lay off workers and unemployment rises. Therefore, there typically is an inverse relationship between unemployment and real GDP growth.

The Unemployment Rate Tends to Move Inversely with Real GDP