How is GDP related to the unemployment rate? What are the five components on the expenditure side of GDP

How is GDP related to the unemployment rate? What are the five components on the expenditure side of GDP (don't Yust give the letters, say what they each stand for).

Solutions

Expert Solution

GDP and the unemployment rate are inversely related, the higher the GDP growth in the market the lower the unemployment rate will be, if the GDP is at the potential level the unemployment rate will be at the natural rate, if the GDP growth rate is falling then the unemployment rate in the market will be increasing.

the five component of the expenditure side of the the GDP are Consumption (what the consumer demand in the market,) investment what the firms in the market are investing, government purchases, net export that is total export of the nation - total import of the nation.

Rahul Sunny answered 1 year ago

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