Question

Look at this chart showing declines in industrial production during the Great Depression.

Based on these figures, what can one most likely conclude about Sweden?

Sweden did not depend on industrial production.
Sweden’s economy was less stable than most.
Sweden and Great Britain had similar economies.
Sweden had a lower unemployment rate than the United States.

Answer 1

D. Sweden had a lower unemployment rate than the United States

Answer 2

The fourth alternative is correct (D).

The decline in industrial productivity causes a decrease in the employment rate, since industry is one of the sectors that most employ. If the decline in industrial output is large, as was the case in the US during the Great Depression, at around 47%, the unemployment rate increased proportionately. If the industrial decline was not as high as in Sweden (10%), the unemployment rate also increased proportionally to the sector's weight.

Taking a relative analysis in relation to the industrial decline of the two countries, it is inferred that the rate of unemployment of Sweden was smaller than the one of the USA.