After year 2 of the Great Recession, the United States began to experience in real GDP and in the unemployment rate. in aggregate demand could allow real GDP and the unemployment rate to continue in their current direction.

After year 2 of the Great Recession, the United States began to experience an increase in real GDP and a decrease in the unemployment rate. An increase in aggregate demand could allow real GDP and the unemployment rate to continue in their current direction.

Explanation:

The reason is that when the economy recovers then the real GDP increases as the maximum number of employees are working due to increase in the aggregate demand. The increase in employees recruited also increases the purchasing power of the people recruited which increase the domestic demand of the products which again increases the Real GDP and increased employment. Growing economy like China, Canada and India have higher GDP growth which shows that their aggregate demand is growing which is a positive sign for investors and residends of that country. Furthermore, increase in Real GDP increases the employment rate as well.

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