Question

question 16:
in the graph below, the shaded areas represent recessions.
unemployment rate for all civilian workers
seasonally adjusted, 1948-2009
14
12
10
8
6
4
2
0
1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
percent
source: u.s. bureau of labor statistics
www.bls.gov
what is the relationship between unemployment rates and recessions?
(1 point)
unemployment rates fluctuate constantly so it is difficult to determine if they are related to recessions.
unemployment rates show a downward trend after a recession and an upward trend during a recession.
recessions begin when unemployment rates increase and end as soon as the rates begin to drop.
recessions begin when unemployment rates are dropping and end when the rates reach a low point.

Explanation:

To determine the relationship, analyze the graph: shaded areas (recessions) and unemployment rate trend. During recessions (shaded), unemployment rates rise (upward trend), and after recessions, rates fall (downward trend). Let's evaluate options:

1. First option: Incorrect, as a pattern (relation) is visible.
2. Second option: Matches the trend (up during recession, down after).
3. Third option: Incorrect, recessions don't end "as soon as" rates drop (rates may rise then fall during recession).
4. Fourth option: Incorrect, recessions don't begin when rates drop (rates rise during recessions).

Answer:

B. Unemployment rates show a downward trend after a recession and an upward trend during a recession.