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Which of the following is most likely to indicate higher unemployment?
Multiple Choice
a decrease in real GDP
an increase in nominal GDP
O
a decrease in nominal GDP
an increase in real GDP



Answer :

GinnyAnswer
In the context of the question, higher unemployment is most likely to be indicated by: - a decrease in real GDP When real GDP (Gross Domestic Product adjusted for inflation) decreases, it suggests a decline in the overall economic output of a country. This decrease can be linked to reduced production and economic activity, often leading to layoffs and higher unemployment rates as businesses may cut jobs in response to the economic slowdown. Therefore, a decrease in real GDP is an indicator of higher unemployment levels. Conversely, an increase in real GDP usually signifies a growing economy with more job opportunities and lower unemployment rates.

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