Year 2010 2011 2012 2013 2014 2015 Economic growth (%) 2.7 1.7 1.3 2.7 2.5 1.9 Unemployment (%) 9.6 8.9 8.1 7.4 6.2 5.3 Examine the data on the economic growth and unemployment rate for 2010-2015 a. What trends do you observe in the unemployment rate? In economic growth? b. Identify the relationship between Economic Growth and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice. c. Does the relationship observed in part 2 satisfy the economists' view of the relationship between economic growth and unemployment? Use references to support your answer.
|
Year |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
|
2.7 |
1.7 |
1.3 |
2.7 |
2.5 |
1.9 |
|
|
9.6 |
8.9 |
8.1 |
7.4 |
6.2 |
5.3 |
Examine the data on the economic growth and unemployment rate for 2010-2015
a. What trends do you observe in the unemployment rate? In economic growth?
b. Identify the relationship between Economic Growth and Unemployment, if any. (positive, negative, no relationship) Use the data to justify your choice.
c. Does the relationship observed in part 2 satisfy the economists' view of the relationship between economic growth and unemployment? Use references to support your answer.
GDP is the value of all final goods and services produced in an economy over a given period of time. Real GDP is the value of GDP adjusted for inflation. The growth rate of real GDP from one year to another is used as an indicator of the economic growth of an economy.
The unemployment rate defines the fraction of the total labor force that is unemployed. The total labor force consists of employed and unemployed people.
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