<< Chapter < Page | Chapter >> Page > |
Card 4 / 7:
What are the different policy tools for dealing with cyclical unemployment?
If there is a recession and unemployment increases, we can call on an expansionary fiscal policy (lower taxes or increased government spending) or an expansionary monetary policy (increase the money supply and lower interest rates). Both policies stimulate output and decrease unemployment.
Previous Card | ← Previous Card Button |
Next Card | → Next Card Button |
Flip Card | ↑ / ↓ / Return / Space |
Notification Switch
Would you like to follow the 'Principles of macroeconomics for ap® courses' conversation and receive update notifications?