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This graph shows the changing unemployment rate in the United States. Based on this graph, what can be concluded about the economy between 1991 and 2008? A) The economy was getting stronger because employment was high. B) The economy was getting stronger because too many manufacturing jobs were available. C) The economy was getting weaker because employment was low. D) The economy was getting weaker because stagflation was occuring. Download png

Carlton Burgess

in History

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1 answer

Jessie Thompson on July 12, 2018

ANSWER: C) The economy weakens because employment is low.EXPLANATION: The economy was becoming more weak as the employment graph is going down. Unemployment has a multiplier effect on the society as well as in the economy of the country. For example, if a person becomes unemployed due to any reason and there is nobody who can fill the void, then the state is losing to a person of the tax and subsequent income. Also, we can assume that there will be less productivity due to their absence. So, when a lot of people go unemployed, the country loses a significant part of the taxes of the residents. This causes a drop in the GDP of the country.

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