Abstract

According to the classic macro-economics, a region with higher GDP would have a lower unemployment rate. However, the unemployment rate in California, the state often gets the greatest GDP amount in the US, often exceeds the one in Texas. It contradicts the standpoint above. Inspired by an article written by Joe Weisenthal, I suspect it has something to do with the different house prices in California. The following article will explain the relationship between the unemployment rate and the housing price in a region.

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