Concept:Unemployment is often reduced by boosting total spending in the economy through expansionary fiscal policy.
Explanation:When the government increases its expenditure and reduces taxes, households and firms have more disposable income.
Higher disposable income raises aggregate demand for goods and services.
Firms respond to the higher demand by producing more output.
To increase production, firms hire more workers, thereby reducing unemployment.
Increasing taxes and decreasing government expenditure would lower aggregate demand and worsen unemployment.
Stabilization policy is a broad idea, but the specific active strategy here is expansionary fiscal policy.
Ensuring even distribution of jobs is about fairness, not a direct macroeconomic measure to create more jobs.
Answer:C. increase government expenditure and decrease taxes