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)10 percent,1 percent
B)2 percent,12 percent
C)-1 percent,8 percent
D)-2 percent,2 percent

Question

Quizplus · Accepted Answer

A negative GDP growth rate paired with an 8 percent unemployment rate is a more realistic pair for the United States. This is because a negative growth rate indicates an economic contraction or slowdown, which often leads to job losses and higher unemployment rates. An unemployment rate of 8 percent is still high, but not drastically so, given the current economic conditions caused by the COVID-19 pandemic. Choices A, B, and D all have unlikely combinations of high GDP growth rates paired with either very low or very high unemployment rates.

Below Are Pairs of GDP Growth Rates and Unemployment Rates