Final answer:
The broad set of policies that need to be employed by the government when experiencing cyclical unemployment are fiscal policies, monetary policies, and structural policies. Fiscal policies involve changes in government spending and taxation, while monetary policies focus on controlling the money supply and interest rates. Structural policies aim to improve long-term economic efficiency and competitiveness.
Step-by-step explanation:
The broad set of policies that need to be employed by the government when experiencing cyclical unemployment are fiscal policies, monetary policies, and structural policies.
Fiscal policies are measures taken by the government to influence the economy through changes in government spending and taxation. When experiencing cyclical unemployment, the government can use expansionary fiscal policies such as lower taxes or increased government spending to stimulate output and decrease unemployment.
Monetary policies are actions taken by the central bank to control the money supply and interest rates. In the case of cyclical unemployment, the government can use expansionary monetary policies such as increasing the money supply and lowering interest rates to stimulate economic activity and reduce unemployment.
Structural policies refer to a range of measures aimed at improving the efficiency and competitiveness of an economy in the long run. While not directly targeting cyclical unemployment, structural policies can help create a more resilient economy that is better equipped to handle economic downturns and reduce unemployment in the long term.