From a macroeconomic perspective,the policymaker can be most effective with policies that target cyclical unemployment.

Question

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Cyclical unemployment is the type of unemployment that is a result of fluctuations in the business cycle. Thus, policymakers can use fiscal and monetary policies to stimulate demand and boost economic activity, which can reduce cyclical unemployment. Therefore, policies targeting cyclical unemployment can have a direct impact on the overall economy and be more effective in the short term compared to policies targeting other types of unemployment such as structural or frictional unemployment.

From a Macroeconomic Perspective,the Policymaker Can Be Most Effective with Policies