Which of the Following Policies Could the Government Implement to Reduce

question 79

Multiple Choice

Which of the following policies could the government implement to reduce cyclical unemployment?

• A)retraining programs for chronically unemployed people
• B)a national "job bank" listing available jobs throughout the country
• C)relocation allowances to move unemployed people around the country
• D)expansionary monetary policy
• E)contractionary monetary policy

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Definitions:

Loanable Funds

The funds available in the financial markets for borrowing, which come from people's savings and the money printed by the government.

Government Expenditures

The total amount spent by the government in a given period, including spending on goods and services, social benefits, and public works.

Taxes On Interest Income

Taxes applied to income gained through interest from savings or investments.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, typically on an annual basis.