Question

Frictional and structural unemployment can be alleviate by implementing a supply-side policy such as

Answer 1

D) The government giving tax breaks to companies locating in poor geographic areas.

Answer 2

The correct answer is option D) "the government giving tax breaks to companies locating in poor geographic areas". Supply-side policies are plans to increase the aggregate supply to enhance the productivity. Giving tax breaks to companies located in poor geographic areas would enhance the productivity would alleviate the frictional and structural employment of these areas, because more companies would be created and growth.