Answered

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

\begin{tabular}{|l|c|l|l|}
\hline
& 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 :

To analyze the relationship between industrial production and unemployment presented above, let's look at the data from each country:

1. United States:
- Industrial production decreased by 46%.
- Unemployment increased by 607%.

2. Britain:
- Industrial production decreased by 23%.
- Unemployment increased by 129%.

3. Germany:
- Industrial production decreased by 41%.
- Unemployment increased by 232%.

From these observations, we can see a consistent pattern across all three countries:

- When industrial production decreases, unemployment rises significantly.

Given this pattern, here's the interpretation of each option:
1. A rise in unemployment is tied to a rise in industrial production.
- This is incorrect because the data shows that industrial production decreases while unemployment rises.

2. Low unemployment leads to a decline in industrial production.
- This is incorrect because the data shows unemployment actually increases when industrial production declines.

3. A drop in industrial production leads to a drop in unemployment.
- This is incorrect as well because the data indicates that a drop in industrial production leads to an increase in unemployment.

4. Declines in industrial production are tied to a rise in unemployment.
- This is correct because, consistently across all the presented countries, a decrease in industrial production is associated with a significant increase in unemployment.

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