One way that public policy can increase employment without causing inflation is

Question

One way that public policy can increase employment without causing inflation is to
Answer
a. That cannot be done! Increasing employment means increasing output, and that's always inflationary.
b. Adopt policies that encourage the development of newer technologies, which will increase productivity and shift the LRAS curve to the right.
c. Always use monetary policy, not fiscal policy, to deal with rising unemployment.
d. Always use fiscal policy to deal with demand-driven recessions, and monetary policy to deal with recessions caused by supply shocks.

Explanation / Answer

That answer was incorrect. I used this answer on my quiz and got the question wrong! The correct answer is B.) Adopt policies that encourage the development of newer technologies which will increase productivity and shift the LRAS curve to the right.

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