Question

In a mixed market economy, what is a typical way the government can reduce unemployment?

A) The government can pay for projects to create work.

B) The government can control new factories to provide jobs.

C) The government can create new farm fields to hire workers.

D) The government can raise taxes to encourage employment.

Answer 1

In a mixed market economy, the government typically reduces unemployment by funding projects to create jobs, which stimulates economic growth and provides work opportunities.

Step-by-step explanation:

In a mixed market economy, the government can reduce unemployment through several means. One typical way is by initiating public works projects, which can create job opportunities. This approach is effectively summarized as: The government can pay for projects to create work. Such government spending stimulates economic activity and can lead to the hiring of unemployed workers. However, the government must balance its actions to ensure it does not become too intrusive, possibly leading businesses to restrict their hiring due to excessive regulation. Government policy and spending actions can influence the natural rate of unemployment, even though there are factors beyond its control, such as demographic shifts and changes in productivity.