III KNOWLEDGE CHECK In the United States, why is there a strong relationship between unemployment and GDP? In the U.S. government spending accounts for 17% of GDP. When unemployment rises, governments spend more on unemployment benefits. Therefore, GDP rises. DINTI As the economy booms, private investment, government spending, and net exports will cause GDP to rise, leading to unemployment Consumer spending accounts for two-thirds of the U.S. economy. When the number of unemployed consumers rises, there is less consumer spending As the U.S. is a net exporter, exports go down when workers are unemployed. This is because there are fewer workers manufacturing products for the global markets