Expansionary Fiscal Policy Can Be Used to Reduce Cyclical Unemployment

question 12

Multiple Choice

Expansionary fiscal policy can be used to reduce cyclical unemployment by

• A) increasing long-run aggregate supply so as to raise real GDP.
• B) increasing aggregate demand so as to raise real GDP.
• C) raising nominal wages so as to encourage workers to work more hours.
• D) eliminating inefficiencies from labor markets.

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Definitions:

Stable

Characterized by consistency, lacking in significant change or fluctuation, and maintaining equilibrium.

Generalist Intervention Model

A social work practice model that provides a framework for intervention involving assessment, planning, implementation, evaluation, and advocacy.

Accountability

The obligation of an individual, group, or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Effective Interventions

Actions or strategies implemented to bring about positive change in a situation, behavior, or condition, based on evidence or best practices.