1. What are the fiscal policies that will be required in order to reduce unemployment? 2.which
1. Fiscal policies to reduce unemployment include tax cuts and increased government spending in an effort to spur economic growth. These policies could include an increase in public sector employment or providing support for job seekers, increasing unemployment benefits and investing in infrastructure projects to create jobs.
2.Fiscal policy to combat inflation focuses on decreasing aggregate demand by increasing taxation or reducing government expenditure. This then causes a decrease of money supply in an economy and counters rising prices because of increased demand.
3. There are potential downsides to fiscal policy. These include: political gridlock that prevents legislation from being passed; budget deficits due to taxation not keeping pace with expenditures over the time period; and unintended consequences such as certain sectors exacerbating inequality by rewarding wealthy individuals while penalizing poor people.
Fiscal policy’s main tool is budgeting. Budgeting allows governments to create their annual plans that detail revenue sources and expenses. Although borrowing liquidity from the external market may be necessary, it can also be done when this is convenient. However, interest payments must be paid.
5.Monetary policies required to fight unemployment involve central banks loosening economic conditions encouraging borrowing amongst consumers/corporations who may need additional capital spend via investments into goods/services creating jobs that don’t exist yet helping bolster production levels ultimately improving market conditions overall eases burden businesses hiring engaging locally globally respectively relieving pressure state labor departments seeking solutions stemming persistent issues being monitored tackled decided level fits best respective context scenarios events circumstances governed lasting fix solution permanent effect.
6.The following are some of the monetary measures to combat inflation. They include printing excess currency, settlements arrived bonds and exchange rates fluctuating.