A global financial crisis began in 2008 and soon led to a large drop in aggregate demand in many countries, including Canada. In its 2009 and 2010 budgets, the Canadian government significantly increased its planned spending on infrastructure projects in order to fight the existing recession and protect jobs. a. Explain why such a policy may "create" jobs. A. Government spending helps reduce labour-market flexibility, which causes job growth. B. The government's infrastructure spending reduces cyclical unemployment. C. The level of frictional unemployment tends to decline during such programs. D. Such a policy reduces structural unemployment