A government in a developed economy wishes to reduce cyclical unemployment.
Which policy is likely to be MOST effective?
Select ONE answer:
- decrease government expenditure and increase income tax
- decrease its budget deficit
- increase government expenditure and decrease income tax
- increase its budget surplus
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS4 and KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct
- Not correct
This work is licensed under a Creative Commons Attribution 4.0 International License.
The Multiple Choice Questions Blog 