The data below shows economic growth rates, unemployment rates, and inflation rates for a hypothetical economy between 2021 and 2024.
| Year | Real GDP growth rate (%) | Unemployment rate (%) | Inflation rate (%) |
|---|---|---|---|
| 2021 | 3.8 | 4.1 | 3.2 |
| 2022 | 1.6 | 5.3 | 1.5 |
| 2023 | -0.4 | 6.8 | 0.4 |
| 2024 | -2.1 | 8.2 | -0.9 |
All other things being equal, which one of the following is the most likely explanation for the relationship between the rates of growth of real output, rates of unemployment, and inflation over this period?
A significant depreciation in the external value of the national currency.
A major structural improvement in labor productivity across the national economy.
A sustained contraction in aggregate demand, driven by tight monetary and fiscal policy.
A series of severe supply-side shocks, such as a sharp rise in global energy prices.
