Which of the following government policies or programs would be most appropriate to offset cyclical unemployment?

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a lack of demand in the economy, so the most appropriate government policy to offset it would be those that stimulate more demand. This could be achieved through fiscal policies like increased government spending or tax cuts, or through monetary policies like lower interest rates. By increasing demand, businesses will need to hire more workers to keep up with increased demand, thus reducing cyclical unemployment. Job training, placement services, and health services are all important policies, but they are better suited for addressing structural or frictional unemployment, rather than cyclical unemployment.

Which of the Following Government Policies or Programs Would Be