Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which option describes a Keynesian policy used to reduce cyclical unemployment?

  • Aadopting a supply-side policy to retrain unskilled workers
  • Ballowing the private sector to take over the supply of merit goods
  • Cincreasing the ratio of capital equipment to manual labour in production
  • Dusing fiscal policy to increase effective demand

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