If the economy is experiencing unemployment,then the most appropriate government policy would be to shift the aggregate:
A)demand curve by using a tax increase coupled with spending cuts.
B)demand curve by using a tax increase coupled with more spending.
C)demand curve by using a tax cut coupled with spending cuts.
D)demand curve by using a tax cut coupled with more spending.
E)supply curve by using a tax cut coupled with spending cuts.

Question

Quizplus · Accepted Answer

If the economy is experiencing unemployment, the most appropriate government policy would be to shift the aggregate demand curve by using a tax cut coupled with more spending. This is known as expansionary fiscal policy. By cutting taxes, consumers will have more disposable income to spend, which will increase aggregate demand. Additionally, increased spending by the government will also increase aggregate demand. Together, these policies will help to increase economic growth and reduce unemployment.

If the Economy Is Experiencing Unemployment,then the Most Appropriate Government