Question

If unemployment is on the rise, would you depend on fiscal or

monetary policy to address the problem? Explain why in your own
words and provide a specific example of an appropriate policy
tool.

Answer 1

Both fiscal and monetary policies can be used to address rising unemployment. An expansionary fiscal policy, such as lowering taxes or increasing government spending, can stimulate economic growth and decrease unemployment.

Step-by-step explanation:

When unemployment is on the rise, both fiscal and monetary policies can be utilized to address the problem. Fiscal policy involves the government's use of taxes and spending to manage the economy. An appropriate policy tool in this case could be an expansionary fiscal policy, which involves lowering taxes or increasing government spending to stimulate economic growth and decrease unemployment.