Assume that the government is considering different policies to increase total expenditures in order to reduce unemployment.Which of the following would achieve this objective?
A)decreasing taxes
B)increasing government spending
C)increasing transfer payments
D)All of the above are correct.

Question

Assume that the government is considering different policies to increase total expenditures in order to reduce unemployment.Which of the following would achieve this objective?
A)decreasing taxes 
B)increasing government spending 
C)increasing transfer payments 
D)All of the above are correct.

Quizplus · Accepted Answer

Decreasing taxes, increasing government spending, and increasing transfer payments all increase total expenditures by boosting aggregate demand, which can help reduce unemployment.

Assume That the Government Is Considering Different Policies to Increase