In general how do changes in the unemployment rate vary with changes in real gdp

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Thyme

Social Studies

14 July, 01:37

In general how do changes in the unemployment rate vary with changes in real gdp

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Adelyn Orr · Answer 1

Changes in unemployment rate is positively related to the real GDP. Real GDP is the actual increase in output which will ultimately be achieved by having more labour resources. This will in turn create employment. So a high real GDP is good for a country as it will keep the unemployment level low and economy running.