Which action is the government likely to take in order to decrease cyclical unemployment?

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

To combat cyclical unemployment, governments often implement policies that stimulate economic activity. Reducing government expenditure typically decreases overall demand, which can worsen cyclical unemployment rather than reduce it. Therefore, cutting government spending is not an effective measure to lower cyclical unemployment.

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