Answer to Question #113149 in Macroeconomics for zuks

Question

Unemployment can decrease if...
1.there is an economic recession.
2.education system improves.
3.investment spending increase.
4.aggregate demand decrease.

Answer 1

The answer is: 3. investment spending increase. 

Increase in the investment spending increases the aggregate demand. This in turn increases the employment level in the economy, reducing the demand deficient unemployment.