which of the following is a fiscal policy action aimed at reducing unemployment?
Fiscal Policy Action to Reduce Unemployment
Cevap:
One of the fiscal policy actions aimed at reducing unemployment is an increase in government spending. When the government increases its spending on infrastructure projects, job creation programs, or subsidies to businesses, it can stimulate economic activity and create more job opportunities. By boosting aggregate demand in the economy through increased government spending, consumption and investment levels can rise, leading to a reduction in unemployment rates. This approach is based on the belief that by injecting money into the economy through government spending, demand for goods and services will increase, prompting firms to hire more workers to meet the rising demand.