O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2023 · Q221 Mark
Which change to fiscal policy is most likely to reduce cyclical unemployment in an economy?
Aincreasing direct taxation
Bincreasing the budget deficit
Cincreasing the budget surplus
Dincreasing the money supply
✓ Correct answer
B: increasing the budget deficit
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