The current GDP growth rate is −1% . Last year it was 2.1% . What does this tell you about the economy? Explain.(1 point) Responses It is not healthy and contracting because there has been poor growth for two years. It is not healthy and contracting because there has been poor growth for two years. It is healthy because any growth rate in the past two years shows a successful economy. It is healthy because any growth rate in the past two years shows a successful economy. It is not healthy and contracting because there was negative growth this year. It is not healthy and contracting because there was negative growth this year. It is healthy because any growth rate over −5% is considered positive for a large economy.
The correct response is: It is not healthy and contracting because there has been poor growth for two years.
The current GDP growth rate being negative (-1%) indicates that the economy is contracting. Furthermore, the fact that the growth rate was also relatively low (2.1%) the previous year suggests that the economy has been experiencing poor growth for two consecutive years. Both of these indicators point to an unhealthy economy.