Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?

Question

Quizplus · Accepted Answer

Policymakers who believe that the costs of unemployment are very high will favor policies that stimulate aggregate demand to reduce it. Strong fiscal and monetary stimulus policies would achieve this objective by increasing government spending, reducing taxes, promoting investment, and lowering interest rates, among other measures. These policies are meant to boost outputs, create jobs, and eventually drive economic growth.

Policymakers Who Believe That the Costs of Unemployment Are Very