How do changes in the unemployment rate vary with changes in real GDP and why we could see an increase in the official unemployment rate after several quarters of a strong expansion. Concept Introduction: Unemployment: When the people are willing and able to work at the market wage rate, but are not getting work, then this situation in the economy is called as unemployment. Unemployment is basically used to measure health of any economy. Gross Domestic Product (GDP): All the finished goods and the services produced by the normal resident and nonresident people, have some gross money value or gross market value, these goods and services are prepared within the borders of the country in an accounting year. Economic Recession: The prior stage of depression is said as recession, in this stage there is slow down all through the economy that is in stock market, house good market as well as there is increase in unemployment.

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Chapter 8, Problem 2P

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To explain:

How do changes in the unemployment rate vary with changes in real GDP and why we could see an increase in the official unemployment rate after several quarters of a strong expansion.

Concept Introduction:

Unemployment: When the people are willing and able to work at the market wage rate, but are not getting work, then this situation in the economy is called as unemployment. Unemployment is basically used to measure health of any economy.

Gross Domestic Product (GDP): All the finished goods and the services produced by the normal resident and nonresident people, have some gross money value or gross market value, these goods and services are prepared within the borders of the country in an accounting year.

Economic Recession: The prior stage of depression is said as recession, in this stage there is slow down all through the economy that is in stock market, house good market as well as there is increase in unemployment.

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