Answer to Question #322789 in Macroeconomics for Odogwu

Question

What are the solutions that a nation can adopt to reduce unemployment

Answer 1

The monetary policy entails lowering interest rates in order to increase aggregate demand (AD)

The fiscal policy entails lowering taxes in order to enhance AD.

Education and training can aid in the reduction of structural unemployment.

Geographical incentives encourage businesses to invest in underserved areas.

Minimize the minimum wage in order to reduce real wage unemployment.

More adaptable labor markets, making it easier to hire and fire employees.