Jobless recoveries require more government action than what is normally assumed with standard demand-side policy remedies.

Question

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Jobless recoveries refer to periods of economic growth where employment growth does not keep up with output growth. This can happen due to structural changes in the economy, such as technological advancements or globalization. In such cases, traditional demand-side policies like fiscal and monetary stimulus may not be sufficient to generate enough job creation. Instead, governments may need to implement more targeted policies to address the specific causes of joblessness, such as investing in worker retraining programs, supporting small businesses, or promoting industries with high employment potential.

Jobless Recoveries Require More Government Action Than What Is Normally