Provide three policies that can reduce
Three policies that can reduce unemployment are as follows:-
1. Monetary policies :– Cutting interest rates to boost aggregate demand.It would involves cutting interest rates. Lower rates decrease the cost of borrowing and encourage people to spend and invest. This increases AD and should also help to increase GDP and reduce demand deficient unemployment.
Also, lower interest rates will reduce exchange rate and make exports more competitives.
2.Fiscal policies :– cutting taxes to boost AD.It can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending.
3.Education and training to help reduce structural unemployment.
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