Question

You are a member of Congress and your aide reports that unemployment continues to rise. You are due to report to the floor to vote on several bills. To address unemployment, you vote for the proposed bill that aims to:_________ a) increase spending on grants for small businesses. b) increase taxes on large corporations. c) regulate unemployment offices. d) regulate cell phone towers.

Answer 1

Answer:

a) increase spending on grants for small businesses.

Explanation:

Government spending which is an expansionary fiscal policy will stimulate the supply side of the economy and by extension create more jobs.

When government spending is targeted at small businesses which is the engine of growth, it will in no small measure generate more activities in goods produced by the small businesses thereby reducing unemployment.

Answer 2

Answer:

The correct answer is A, "Increase spending on grants for small businesses."

Explanation:

I got it right on the exam. I hope this helps!