The government may attempt to reduce unemployment by
A) shifting the aggregate demand curve to the left.
B) increasing the tax rate on personal income.
C) reducing private spending.
D) increasing government spending.
E) decreasing the multiplier.

Question

Quizplus · Accepted Answer

Increasing government spending can lead to an increase in a country's aggregate demand, which in turn can help reduce unemployment. This is because increased spending can lead to an increased demand for goods and services, which can drive economic growth and create jobs.

The Government May Attempt to Reduce Unemployment by