An example of structural macroeconomic policy focused on the labor market is:?

Question

An example of structural macroeconomic policy focused on the labor market is:

A. an increase in the money supply.

B. a reduction in interest rates.

C. a tax cut

D. an increase in government spending.

E. a program to reduce labor market rigidities.

Answer 1

E. a program to reduce labor market rigidities. Next would go "D" if gov spending are intended to create demand for certain markets thus stimulate them for development/growth.

Answer 2

The correct answer is ; E. a program to reduce labor market rigidities

Structural reforms deals with macroeconomic and micreconomic structural problems that should be addressed to improve competitive efficiency of the market and production and distribution process. Rigities in labor market constrains efficiency of labor and also the operation of product and factor markets. Removal of labor market rigidities is therefore a structural labor market economic policy.