Look at this chart showing the economic impact of the Great Depression between 1929 and 1932.

\begin{tabular}{|l|c|l|l|}
\hline & \multicolumn{1}{|c|}{ US } & Britain & Germany \\
\hline \begin{tabular}{l}
Industrial \\
production
\end{tabular} & [tex]$\downarrow 46 \%$[/tex] & [tex]$\downarrow 23 \%$[/tex] & [tex]$\downarrow 41 \%$[/tex] \\
\hline Foreign trade & [tex]$\downarrow 70 \%$[/tex] & [tex]$\downarrow 60 \%$[/tex] & [tex]$\downarrow 61 \%$[/tex] \\
\hline Unemployment & [tex]$\uparrow 607 \%$[/tex] & [tex]$\uparrow 129 \%$[/tex] & [tex]$\uparrow 232 \%$[/tex] \\
\hline
\end{tabular}

Based on the chart, what can one most likely conclude about the relationship between industrial production and unemployment?

A. A rise in unemployment is tied to a rise in industrial production.
B. Low unemployment leads to a decline in industrial production.
C. A drop in industrial production leads to a drop in unemployment.
D. Declines in industrial production are tied to a rise in unemployment.



Answer :

Let's analyze the data from the given chart to derive a relationship between industrial production and unemployment:

1. United States:
- Industrial production fell by 46%.
- Unemployment rose by 607%.

2. Britain:
- Industrial production fell by 23%.
- Unemployment rose by 129%.

3. Germany:
- Industrial production fell by 41%.
- Unemployment rose by 232%.

Next, we need to correlate the decline in industrial production with the change in unemployment:

- For the United States, a significant drop in industrial production (46%) corresponds to a substantial rise in unemployment (607%).
- In Britain, a moderate decline in industrial production (23%) leads to a smaller but still notable increase in unemployment (129%).
- In Germany, a large decrease in industrial production (41%) is paired with a considerable increase in unemployment (232%).

From this pattern, it is clear that when industrial production decreases, unemployment tends to increase. Thus, there is a strong relationship indicating that declines in industrial production are associated with increases in unemployment.

Given the options:
- A rise in unemployment is tied to a rise in industrial production. (Incorrect: Data shows an increase in unemployment when industrial production falls.)
- Low unemployment leads to a decline in industrial production. (Incorrect: Data does not support this; it shows the reverse relationship.)
- A drop in industrial production leads to a drop in unemployment. (Incorrect: Data indicates that a drop in industrial production increases unemployment.)
- Declines in industrial production are tied to a rise in unemployment. (Correct: This is consistent with the data provided.)

Therefore, the correct conclusion based on the chart is:
Declines in industrial production are tied to a rise in unemployment.