the graph shows the number of employed workers in the united states in nonfarm jobs from 2008 to 2013. what…
the graph shows the number of employed workers in the united states in nonfarm jobs from 2008 to 2013. what course of action might a government take to respond to the downturn revealed in this graph? reducing the size of its armed forces laying off unnecessary workers decrease taxes to increase consumers money supply encouraging people to travel overseas
Answer
Brief Explanations:
When there is an economic downturn shown by a decrease in employed workers, a government can use fiscal - policy measures. Decreasing taxes is an expansionary fiscal policy. It increases consumers' disposable income, which can stimulate consumption and economic growth, potentially creating more jobs. Reducing the size of the armed forces and laying off unnecessary workers would not directly address the economic downturn and could even worsen unemployment. Encouraging people to travel overseas would not necessarily boost the domestic economy and employment.
Answer:
decrease taxes to increase consumers’ money supply