If an economy has just suffered a serious recession but real gdp is expanding once again, we can conclude the unemployment rate will:

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11-01-2018
Business

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If an economy has just suffered a serious recession but real gdp is expanding once again, we can conclude the unemployment rate will:

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Kalahira Kalahira · Answer 1 · 2018-01-23T23:54:43+01:00

Kalahira Kalahira

23-01-2018

If an economy has just suffered a serious recession, we can conclude that the unemployment rate is high. After the recession when the real gdp is expanding, we can safely assume that more workers are needed to produce the gdp, which means that the unemployment rate will drop.

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