If the government wants to try to reduce unemployment, it could ________ spending and/or taxes should be ________.
A)increase; decreased
B)decrease; decreased
C)decrease; increased
D)increase; increased

Question

Quizplus · Accepted Answer

By increasing government spending, which can come in the form of increased public works projects and investment in education and training programs, the government can create jobs and therefore reduce unemployment. Decreasing taxes can also stimulate consumer spending, which can lead to increased demand for goods and services and potentially create more jobs. However, decreasing spending can lead to cuts in government programs and services, which can potentially lead to job losses and further exacerbate unemployment. Increasing taxes can also potentially slow down economic growth and lead to job losses in certain sectors. Therefore, the best option is to increase spending and decrease taxes.

If the Government Wants to Try to Reduce Unemployment, It