Which policy is typically used to reduce unemployment?

Which policy is typically used to reduce unemployment?

Step 1: Understand what unemployment means. It is when people who want to work cannot find jobs.
Step 2: Learn about fiscal policy. This is how the government uses its money to influence the economy.
Step 3: Know the two main parts of expansionary fiscal policy: increasing government spending and decreasing taxes.
Step 4: Realize that increasing government spending means the government buys more goods and services, which creates jobs.
Step 5: Understand that decreasing taxes means people have more money to spend, which can lead to businesses hiring more workers.
Step 6: Conclude that by using expansionary fiscal policy, the government can help stimulate the economy and reduce unemployment.

No concepts available.