Which conclusion is appropriate if GDP and unemployment both rise?
Answer and explanation
Correct answer: The benefits of growth may not have reached everyone
GDP growth indicates that total production or measured income has increased, but it does not guarantee more jobs or equal sharing of gains. If unemployment rises at the same time, some people may be excluded from the expansion and may not receive its income benefits. Thus, option B is the appropriate cautious conclusion. The other options claim universal employment, equality or poverty elimination without evidence.
Frequently asked questions
What is the correct answer to this question?
The benefits of growth may not have reached everyone
Why is this the correct answer?
GDP growth indicates that total production or measured income has increased, but it does not guarantee more jobs or equal sharing of gains. If unemployment rises at the same time, some people may be excluded from the expansion and may not receive its income benefits. Thus, option B is the appropriate cautious conclusion. The other options claim universal employment, equality or poverty elimination without evidence.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
