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The government utilizes fiscal policies to stimulate aggregate demand and reduce this type of unemployment. When the government subsidizes programs to train workers in new

The government utilizes fiscal policies to stimulate aggregate demand and reduce this type of unemployment. When the government subsidizes programs to train workers in new skills because of changes in technology, it is trying to reduce the amount of blank unemployment. If the government reduces the number of weeks an unemployed worker can collect unemployment insurance payments, then it is likely that blank unemployment numbers would decrease. There is a relationship between a nation's unemployment rate and its production which is represented by Okun's Law. The law predicts that that for every 1% increase in unemployment there will be a blank decrease in gross domestic product (GDP)

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