Demand-side economic policies most effectively reduce a) cyclical unemployment. eliminate b) seasonal unemployment. c) real wage unemployment. d) frictional unemployment.

Demand-side economic policies most effectively reduce cyclical unemployment

Option A

Explanation:

Cyclical unemployment is the type of unemployment where people do not get jobs and get unemployed during recession which is a part of the trade cycle therefore having the name cyclical unemployment.

When there is increase in the demand in the economy because of the policies which are demand sided, it leads to the reduction in unemployment by providing jobs and finishing period of recession and leading to growth of the economy going towards period of recovery and then boom.

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