Question

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

A 4-column table with 3 rows is shown. Column 1 is not labeled with entries Industrial production, foreign trade, unemployment. Column 2 is labeled U S with entries down 46%, down 70%, down 607%. Column 3 is labeled Britain with entries down 23%, down 60%, down 129%. Column 4 is labeled Germany with entries down 41%, down 61%, down 232%.
Based on the chart, what can one most likely conclude about the relationship between industrial production and unemployment?

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

Answer 1

Declines in industrial production are tied to a rise in unemployment.

The chart shows large drops in industrial production alongside very large increases in unemployment, indicating an inverse relationship: when production falls, unemployment rises.