Which of the following government policies or programs is most likely to reduce cyclical unemployment?
A) Those that stimulate economic growth
B) Increased job training
C) Additional job-placement services
D) Additional health services

Question

Quizplus · Accepted Answer

Government policies that stimulate economic growth, such as fiscal and monetary policies, are most likely to reduce cyclical unemployment. These policies increase aggregate demand, which leads to increased economic activity and job creation. In contrast, job training, job-placement services, and health services may help reduce other types of unemployment (such as structural or frictional unemployment), but are less effective in combating cyclical unemployment.

Which of the Following Government Policies or Programs Is Most