The table presents indicators for the macroeconomies of two South American countries across one year. Over this period, both governments tried to lower unemployment by raising aggregate demand. country: Argentina GDP % change 17.9, current account balance % of GDP 1.7, change in currency units against US dollar -18.9; Chile GDP % change 17.2, current account balance % of GDP -1.8, change in currency units against US dollar -13.3. Using the data provided, what is the most likely explanation for why Argentina recorded a larger % change in the unemployment rate than Chile?
- AArgentina had a greater % change in GDP growth.
- BChile’s performance on the current account balance was worse.
- CEach country had a weak exchange rate against the US dollar.
- DWage increases in each country were linked to their respective rates of inflation.