The possible consequences of using fiscal and monetary policies to reduce unemployment are higher debt and the risk of inflation.

Question

Quizplus · Accepted Answer

When fiscal and monetary policies are used to reduce unemployment, it often involves increased government spending or lower interest rates. Both of these actions can contribute to higher debt levels. Additionally, lower interest rates can lead to increased borrowing and higher prices, which can contribute to inflation.

The Possible Consequences of Using Fiscal and Monetary Policies to Reduce