Concept:Unemployment with falling prices signals low demand, so the government should use expansionary fiscal policy by spending more than it collects.
Explanation:When unemployment is high and prices are falling, the economy is in a downturn with weak demand.
The government can boost demand by increasing public spending or reducing taxes.
If planned spending exceeds expected revenue, the budget is said to have a deficit.
This extra spending injects money into the economy and helps create jobs, which counters unemployment and falling prices.
Therefore, a budget deficit is the suitable tool in this situation.
Answer:B. budget deficit