Demand has moved away from goods made by labour-intensive production methods towards similar goods made with high-technology production methods. As a result, total unemployment has risen. What policy would be most effective in reducing this kind of unemployment?
- Areduce the rate of income tax
- Bincrease the rate of interest on borrowing for investment
- Csubsidise products produced by labour-intensive methods
- Dsubsidise exports produced by high-technology industries