Question 34
Economic Growth and DevelopmentA strategy for curbing unemployment is to
- A.implement government stabilization policy
- B.increase taxes and decrease government expenditure
- C.increase government expenditure and decrease taxes.
- D.ensure even distribution of job opportunities.
Show the answer and explanation
Answer: C (increase government expenditure and decrease taxes.)
Explanation
More government spending and lower taxes raise total demand, so firms produce more and hire more workers.