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GDP increased in a country but unemployment also rose. What does this imply?

Answer and explanation

Correct answer: Benefits of growth may not have reached everyone

GDP is an aggregate measure of production, not a guarantee that every person receives income or employment. If GDP rises while unemployment also increases, the expansion may be concentrated in capital-intensive sectors, may use fewer workers, or may distribute gains unevenly. Hence option C is correct: growth may be jobless or insufficiently inclusive. The other options incorrectly assume that aggregate growth automatically benefits everyone or that the measurement must be wrong.

Related tags

UnemploymentJobless GrowthGdpWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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