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If 4 million of those who are currently unemployed become discouraged workers, the unemployment rate will decrease.
Offering government training programs to those who are structurally unemployed, paying subsidies to businesses that train displaced workers, assisting those who are unemployed in relocating to areas where jobs are available, and encouraging job seekers to find employment are all suggested policy measures to reduce structural unemployment.
Fiscal policy is the government's second method for lowering unemployment. By expanding spending on government programs, the president and Congress expand the fiscal policy to generate jobs. The New Deal and the Economic Stimulus Program of 2009 are two excellent examples.
By lowering taxes, the program can also provide people with more money to spend. The economy is deemed to be overheated if unemployment is excessively low. Inflation raises its level of concern at that point.
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