e current GDP growth rate is −1%

Question

. Last year it was 2.1%
. What does this tell you about the economy? Explain.(1 point)
Responses

It is not healthy and contracting because there has been poor growth for two years.
It is not healthy and contracting because there has been poor growth for two years.

It is not healthy and contracting because there was negative growth this year.
It is not healthy and contracting because there was negative growth this year.

It is healthy because any growth rate in the past two years shows a successful economy.
It is healthy because any growth rate in the past two years shows a successful economy.

It is healthy because any growth rate over −5%
is considered positive for a large economy.

Answer 1

The correct response is:

It is not healthy and contracting because there was negative growth this year.

This is because a GDP growth rate of −1% indicates that the economy is shrinking, suggesting a contraction, which is generally a sign of economic distress. While the previous year's growth rate of 2.1% was positive, the current negative growth suggests that the economy has not been able to sustain growth, indicating potential underlying issues such as decreased consumer spending, investment, or external economic factors.