What is meant by the term “jobless growth”?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Increase in the production of goods and services without an increase in employment
Jobless growth is a situation in which the economy produces more goods and services (GDP rises) without creating a matching number of new jobs, so employment does not grow with output.
Why the other options are incorrect
Option (1) Increase in the production of goods and services without an increase in the GDP of the country — Incorrect. GDP is the value of the goods and services produced, so more production means a higher GDP.
Option (2) Increase in the production of goods and services without an increase in the inflation rate — Incorrect. This describes growth with stable prices, which has nothing to do with jobs.
Option (4) None of the above — Incorrect. Option (3) gives the meaning of jobless growth.