Which of the following policies could the government implement to reduce cyclical unemployment?

Question

Quizplus · Accepted Answer

Expansionary monetary policy, such as lowering interest rates or increasing government spending, can stimulate economic growth and increase demand for goods and services, which can lead to an increase in employment and a reduction in cyclical unemployment. Retraining programs, job banks, and relocation allowances may help reduce structural unemployment but would not directly address cyclical unemployment. Contractionary monetary policy, such as raising interest rates, could potentially worsen cyclical unemployment by reducing demand and slowing economic growth.

Which of the Following Policies Could the Government Implement to Reduce