Which of the following is most likely to be an indication of higher unemployment?
A) An increase in real GDP
B) An increase in nominal GDP
C) A decrease in real GDP
D) A decrease in nominal GDP

Question

Quizplus · Accepted Answer

A decrease in real GDP indicates that the economy is producing fewer goods and services, which can lead to a decrease in employment opportunities and therefore higher unemployment rates. An increase in real GDP would suggest an increase in economic activity and potentially lower unemployment rates. Nominal GDP measures the total value of goods and services produced in an economy, without adjusting for inflation, and therefore does not necessarily provide a clear indication of unemployment rates.

Which of the Following Is Most Likely to Be an Indication