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During a recession:

a. unemployment decreases and the growth rate of real GDP increases.
b. unemployment and the growth rate of real GDP both decrease.
c. unemployment increases and the growth rate of real GDP decreases.
d. there is no relation between unemployment and the growth rate of real GDP

Answer :

Mona0991

Answer: C. unemployment increases and the growth rate of real GDP decreases.

Answer:

During a recession: Unemployment increases and the growth rate of real GDP decreases.

Explanation:

In economics, a recession is a trade cycle withdrawal when there is a general drop in economic movement. It usually happens when there is a comprehensive fall in spending.

Okun's law about unemployment increases and GDP decreases:

  • Okun's law has affirmed very clearly that when unemployment drops by 1%, gross national product (GNP) increases by 3%.
  • Another version of Okun's law concentrates on a bond between unemployment and GDP.
  • That states if a percentage rise in unemployment makes a 2% fall in GDP.

Thus we can say during recession there will be unemployment increases and the growth rate of real GDP decreases.

Learn more about recession, refer:

  • https://brainly.com/question/8395694
  • https://brainly.com/question/20597683

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