To solve this question, we examine the data presented in the chart for the United States, Britain, and Germany between 1929 and 1932. The main aspects to look at are the changes in industrial production and unemployment.
- In the US, industrial production declined by 46%, and unemployment increased by 607%.
- In Britain, industrial production declined by 23%, and unemployment increased by 129%.
- In Germany, industrial production declined by 41%, and unemployment increased by 232%.
From this data, we can identify a clear pattern: as industrial production declines, unemployment rises. This trend is consistent across all three countries mentioned in the table.
Given the four options:
1. A rise in unemployment is tied to a rise in industrial production.
2. Low unemployment leads to a decline in industrial production.
3. A drop in industrial production leads to a drop in unemployment.
4. Declines in industrial production are tied to a rise in unemployment.
The correct conclusion, which matches the observed data, is Option 4: Declines in industrial production are tied to a rise in unemployment.
