An economy is facing unemployment. It applies a progressive income tax policy and provides benefits for the poor. The government wants to raise employment and narrow income inequality. Which fiscal policy measures are most likely to meet these aims?
- Adecrease the highest tax rate / decrease benefits for the poor
- Bincrease the highest tax rate / decrease benefits for the poor
- Cdecrease the lowest tax rate / increase benefits for the poor
- Dincrease the lowest tax rate / increase benefits for the poor