During the five-year period of 1928–1932, what happened to the unemployment rate in Germany?

• A. It fluctuated but ended the period lower than it began.
• B. It increased dramatically, reaching historically high levels.
• C. It remained relatively stable with little change.
• D. It decreased significantly due to economic growth.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the historical context of Germany between 1928 and 1932, which includes the Great Depression and its severe economic impact worldwide.
2. Step 2: Recall that the unemployment rate measures the percentage of the labor force that is jobless and actively seeking employment.
3. Step 3: Recognize that during economic downturns, such as the Great Depression, unemployment rates typically rise sharply due to business failures and reduced demand for labor.
4. Step 4: Apply this knowledge to Germany's situation in 1928–1932, noting that the country experienced a dramatic increase in unemployment, reaching historically high levels.
5. Step 5: Conclude that the correct characterization of the unemployment rate in Germany during this period is that it increased dramatically, rather than fluctuating mildly, remaining stable, or decreasing.