Question

In a mixed market economy, what is a typical way the government can reduce unemployment?

Answer 1

By taking inflation out.

Answer 2

Answer:

In a mixed economy the government can reduce unemployment by increasing spending.

Explanation:

A mixed economy can be defined as the economic structure where the government has moderate control over economic activities and resources. The economic activities are partially determined by the market forces and partially by the government.  

In such an economy the government can reduce unemployment by increasing its spending. The government can spend on labor-intensive projects. This will create demand for labor and reduce unemployment.  

Reduction in unemployment causes income to increase. When income increases people will demand more goods and services. To produce more goods and services, more workers will be required.