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measures to reduce unemployment |
| Answer» There are two main strategies for reducing unemployment –\tDemand side policies to reduce demand-deficient unemployment (unemployment caused by recession)\tSupply side policies to reduce structural unemployment / (the natural rate of unemployment)A quick list of policies to reduce unemployment:\tMonetary policy – cutting interest rates to boost AD\tFiscal policy – cutting taxes to boost AD\tEducation and training to help reduce structural unemployment\tGeographical subsidies to help firms invest in depressed areas\tLower minimum wage to reduce real wage unemployment\tMore flexible labour markets, to make it easier to hire and fire workers. | |