To reduce cyclical unemployment the government might: Options: A . &nbspincrease the balance of payments deficit B . &nbspincrease the budget surplus C . &nbspreduce government expenditure D . &nbspincrease the budget deficit

To reduce cyclical unemployment the government might:

Question

To reduce cyclical unemployment the government might:

Options:

A . increase the balance of payments deficit

B . increase the budget surplus

C . reduce government expenditure

D . increase the budget deficit

Answer: Option D
Answer: (d)Low interest rates might encourage more spending and reduce cyclical unemployment.

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