Answer to Question #281466 in Macroeconomics for rro

Question

pakistan has been facing unemployment issues for decades now. You are the Minister of Finance and have been given a task to reduce the unemployment rate in Pakistan. What measures will you take and why? What outcome is expected from those actions?

Answer 1

Measures Taken

I would cut interest rates to boost aggregate demand, this would be my monetary policy to reducing unemployment in Pakistan. In addition, I would allocate more funds towards education and training to help reduce structural unemployment. Furthermore, I would lower minimum wage to reduce real wage unemployment.