Policies to reduce unemployment

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  • Created by: Jess
  • Created on: 19-04-14 11:55

Demand-side policies to reduce unemployment:

  • Expansionary fiscal policy and to encourage an increase in AD, if the economy is operating below its productive capacity, as this will raise output
  • Expansionary monetary policy such as increasing the money supply or lowering interest rates are also likely to increase AD

A04: a rise in…


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