Which of the following government policies or programs would be most appropriate to offset cyclical unemployment?
A)Those that stimulate more demand.
B)More job training.
C)Additional job placement services.
D)Additional health services to counter the effects of unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs during a recession when there is a decrease in demand for goods and services. Therefore, policies that stimulate demand, such as increasing government spending, reducing taxes, or implementing expansionary monetary policy, would be most appropriate to offset cyclical unemployment. Job training, job placement services, and health services may be necessary to address structural and frictional unemployment, but they would not directly address the decrease in demand that leads to cyclical unemployment.

Which of the Following Government Policies or Programs Would Be