Questions what is the main features of the socialist economy?

What can be done to solve unemployment problem?

Key words: Infrastructure, education, wage rate, opportunities.
There are two main strategies for reducing unemployment –

• 
  Demand side policies to reduce demand-deficient unemployment (unemployment caused by recession)
  
• 
  Supply side policies to reduce structural unemployment / (the natural rate of unemployment)
  

A quick list of policies to reduce unemployment

1. 
   Monetary policy – cutting interest rates to boost aggregate demand (AD)
   
2. 
   Fiscal policy – cutting taxes to boost AD.
   
3. 
   Education and training to help reduce structural unemployment.
   
4. 
   Geographical subsidies to encourage firms to invest in depressed areas.
   
5. 
   Lower minimum wage to reduce real wage unemployment.
   
6. 
   More flexible labour markets, to make it easier to hire and fire workers.
   

115. 
     What can be done to solve the poverty problem?
     

Key words: Education, migration, wage rate, jobs
The 2011 GMR suggested several policies that can help reduce the impact poverty has on dropout levels:

• 
  Cash transfers to poor families, with eligibility linked to school attendance, can help to counter the effects of poverty. Such a programme has been successfully employed in Mexico, where it both improved enrolment and average years of schooling achieved.
  
• 
  Early childhood nutrition programmes can ensure that children are physically prepared for school. Children damaged by malnutrition are more likely to start school late, learn less, and to drop out. In Kenya, for example, a relatively cheap deworming programme improved school attendance by seven percentage points.
  

Ensuring that schools have the necessary teachers, resources and infrastructure is essential. In Colombia, a programme to improve the quality and relevance of education significantly reduced dropout rates. Flexible timing of classes can also reduce the indirect costs of sending children to school.

116.