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Government injecting money can lead to higher production and lower unemployment by stimulating national output and job creation.
When the government injects money into the economy, consumers may have more disposable income, which may lead to higher production. This is because increased consumer spending can boost demand for goods and services, prompting businesses to produce more to meet the demand.
Additionally, the increase in money supply can stimulate national output and decrease the unemployment rate as more economic activity generates job opportunities.
In the long run, the money supply increase is less likely to be inflationary when the economy is operating above the natural rate of unemployment as firms expand output without significant price increases due to high competition among job seekers.
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