mm
- Created by: majamic
- Created on: 25-10-15 22:50
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- POLICIES TO REDUCE UNEMPLOYMENT
- D-side/D-def/ Cyclical
- Fiscal & Monetary policy
- Pursue
exp fisc pol by cutting income tax to boost consumer spending and
AD
- Negative
- Tax cuts may not always work
- This would boost consumer disposaincome and hopeful boost consumer spending.
- Higher AD should
- lead to higher eco growth
- encourage firms to employmore workers
- Higher AD should
- This policy will be effectiv for reducinD-def unemplwithout causing higher spendi
- Expansionary fiscal policy increases AD leading to higher Real GDP.
- As output increases firms Deman more workers
- Expansionary fiscal policy increases AD leading to higher Real GDP.
- Negative
- Pursue
exp fisc pol by cutting income tax to boost consumer spending and
AD
- If unempl caused by eco downturn (low/-eco growth)
- -> D-side policies to try & increase AD.
- Pursue
exp fisc pol by cutting income tax to boost consumer spending and
AD
- Negative
- Tax cuts may not always work
- This would boost consumer disposaincome and hopeful boost consumer spending.
- Higher AD should
- lead to higher eco growth
- encourage firms to employmore workers
- Higher AD should
- This policy will be effectiv for reducinD-def unemplwithout causing higher spendi
- Expansionary fiscal policy increases AD leading to higher Real GDP.
- As output increases firms Deman more workers
- Expansionary fiscal policy increases AD leading to higher Real GDP.
- Negative
- Pursue
exp fisc pol by cutting income tax to boost consumer spending and
AD
- -> D-side policies to try & increase AD.
- Fiscal & Monetary policy
- D-side/D-def/ Cyclical
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