Of the following, what economic stabilizing policy is best used to reduce unemployment?
A) the government decides to reduce spending on education and health care
B) the Bank of Canada reduces the money supply
C) the government decides to build a new transportation route
D) the government decides to increase personal income tax

Question

Quizplus · Accepted Answer

Building a new transportation route is an example of expansionary fiscal policy, which can create jobs and reduce unemployment by increasing government spending and stimulating economic activity.

Of the Following, What Economic Stabilizing Policy Is Best Used