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liq [111]
2 years ago
6

If the unemployment rate is rising and gdp is falling, the most appropriate fiscal policy action would be?

Business
1 answer:
PIT_PIT [208]2 years ago
8 0

Answer: The fiscal policy which will help in GDP rise is cutting taxes to boost Aggregate Demand.

Explanation: When government seek into the economy they have two main tools at their disposal --monetary policy and fiscal policy. Fiscal policy is usually used to have a track record of government spending and taxation. which generally increase the influence the economy. Government usually promote fiscal policy  to have a strong and sustainable growth and to reduce the level of the poverty.  A basic equation to calculate the GDP ( gross domestic product) is

GDP=C+I+G+NX

There are mainly two ways to reduce the unemployment rate.

  • Demand side
  • Supply side

Learn more about fiscal policy.

brainly.com/question/6583917

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