Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP. What might policymakers do in the face of these economic indicators? A) encourage a decrease in purchasing until employment figures increase
B) try to trade with other nations to increase production and create new jobs
C) increase taxes so the government has more money to spend
D) implement controls on wages, forcing employers to pay higher wages

The Answer is:: B) try to trade with other nations to increase production and create new jobs

B). Try to trade with other nations to increase production and create new jobs.

Explanation:

Country Q has encountered a brisk fall in its rate of unemployment and as a consequence, a sharp downturn in its GDP. In such a situation, the most significant action to go on would be to 'create new job opportunities' and that can be done by making efforts to encourage trade with other nations which will help in increasing production and more production would generate job opportunities and increase GDP automatically. The increased trade will increase productivity and assist in bringing the economy back on track. Thus, option B is the correct answer.

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