Answer: The fiscal policy which will help in GDP rise is cutting taxes to boost Aggregate Demand.
Explanation: When government seek into the economy they have two main tools at their disposal --monetary policy and fiscal policy. Fiscal policy is usually used to have a track record of government spending and taxation. which generally increase the influence the economy. Government usually promote fiscal policy to have a strong and sustainable growth and to reduce the level of the poverty. A basic equation to calculate the GDP ( gross domestic product) is
GDP=C+I+G+NX
There are mainly two ways to reduce the unemployment rate.
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