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If real GDP rises but the unemployment rate also increases, which analysis is most appropriate?

Answer and explanation

Correct answer: Growth may be jobless, so broad welfare gains may be limited

Real GDP measures the inflation-adjusted value of output, not how many jobs are available or how income is distributed. Output can rise while unemployment also rises, so the benefits may not reach many people through employment. This is why A is the most appropriate analysis.

Related tags

Real GdpUnemploymentGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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