Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A country implements a stimulus package to create jobs during a recession, leading to a decrease in the unemployment rate.
B
A country raises interest rates, causing businesses to cut jobs, which increases the unemployment rate.
C
A country invests in education and training programs, enhancing workforce skills and reducing unemployment over time.
D
All of the above.
Understanding the Answer
Let's break down why this is correct
Answer
Government policies can significantly influence the unemployment rate, especially during times of economic change. For example, if a government decides to invest in infrastructure projects, this can create many new jobs. When people find work on these projects, the overall unemployment rate decreases because more individuals are employed. Conversely, if the government cuts funding for public services, it may lead to job losses, increasing the unemployment rate as people are laid off. So, government actions, like creating jobs or cutting budgets, directly affect how many people are working in the economy.
Detailed Explanation
All the options show how government actions can change the number of jobs available. Other options are incorrect because This option suggests that a stimulus package alone is enough to reduce unemployment; This option implies that raising interest rates always leads to job cuts.
Key Concepts
unemployment definition
government policies
labor market fluctuations.
Topic
Calculating Unemployment Rate
Difficulty
hard level question
Cognitive Level
understand
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