Country Q has noticed a rapid increase in their unemployment rate and a sharp decline in their GDP.What should policy makers focus on to help balance these economic indicators?

A rising unemployment rate alongside falling GDP suggests that the economy is contracting and demand for goods and services is weak. Increasing the money supply can encourage spending, giving businesses more customers and a reason to increase production and hire workers. Decreasing production and spending, as in choice A, would likely make the downturn worse.

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