Decreasing unemployment rate causes economic growth

Reference no: EM13687402

Economists have observed that as an economy grows the unemployment rate tends to fall. Which statement is most probable to be correct?

1) A decreasing unemployment rate causes economic growth.

2) Economic growth and the unemployment rate are positively correlated.

3) Increased economic growth causes a decline in the unemployment rate.

4) This is likely to be a spurious relationship and there is no real relationship between the unemployment rate and economic growth.

Reference no: EM13687402

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