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)5 percent,1 percent
B)3 percent,5 percent
C)-1 percent,3 percent
D)-2 percent,4 percent

Question

Quizplus · Accepted Answer

A realistic pair of GDP growth rate and unemployment rate would be one where GDP growth rate is positive and unemployment rate is not too high. Option B gives a GDP growth rate of 3 percent which is a healthy growth rate and an unemployment rate of 5 percent which is not too high. Option A is unrealistic because a GDP growth rate of 5 percent with an unemployment rate of 1 percent would be too low. Options C and D are both unrealistic because they both have negative GDP growth rates which would indicate a recession and lead to higher unemployment rates.

Below Are Pairs of GDP Growth Rates and Unemployment Rates