Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs in the U.S. Which pair of GDP growth rates and unemployment rates is realistic?
A)6 percent, 0 percent
B)3 percent, 10 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, as a slight economic contraction can coincide with moderate unemployment.

Below Are Pairs of GDP Growth Rates and Unemployment Rates