What action might the government take to address cyclical unemployment in the economy?

Labour Market MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Labour Marketeconomics-mcqs › labour-market
Published
1 Jun 2019
Last updated
28 May 2026

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Explanation

When cyclical unemployment occurs, the government often aims to stimulate economic activity. Encouraging savings can increase the funds available for investment, which helps boost economic growth and reduce unemployment.

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