📊 GMAT Exam Prep

A scatter plot shows the relationship between a country's annual GDP growth rate and its unemployment rate over 20 years. The plot displays points that generally trend downwards from left to right, but with noticeable scatter, particularly at the extremes. What can be inferred about the relationship between GDP growth and unemployment?

A Higher GDP growth causes lower unemployment, with a strong causal link.
B There is a moderate negative correlation between GDP growth and unemployment.
C GDP growth and unemployment are unrelated, despite the visual trend.
D Lower unemployment consistently leads to higher GDP growth.

✓ Correct Answer: Option B

A downward trend from left to right indicates a negative correlation (as one increases, the other decreases). 'Noticeable scatter' suggests the correlation is not perfectly strong, making 'moderate negative correlation' the most accurate inference.

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