Ways To Reduce Unemployment In Malaysia Case Study

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2.2 Ways To Reduce The Unemployment Among Graduates In Malaysia In terms of how to reduce this problem is we should start from the graduates itself because it is useless if government work hard to control this problems but the graduates itself did not want to do anything. Changes attitude of the graduates is the important things that we should took a look. Attitude of graduates themselves have to think professionally and not being negative about something whenever they did not get a job that equivalent with their education followed by a low salaries. As a process of finding a variety of experiences totally its required the graduates to start from below and this situation can enable graduates to learn basic things that…show more content…
Fiscal policy generally refers to the empirical role of the government to achieve the macroeconomic goals such as stability of economic growth, full employment, increasing amount of aggregate demand and stability of price level in the market. There are two main instruments of fiscal policy which are adjusting the amount of taxation uses and government expenditure to regulate the aggregate level of economic activity. This policy is based on Keynesian economic fiscal policy should be used to stabilize the level of output and unemployment. Specifically, Keynes believed the government should cut the taxes and raise their government expenditures which called expansionary fiscal policy or deficit budget automatic fiscal policy (if it is from the perspective of business cycle) to overcome the problem of economic recession. The Malaysian government influences the economy by adjusting the amount of taxes, transfer payments and purchasing in transfer policy. It is known that when the tax is cut, it will directly arise the amount of disposable income. When the income increases, directly it will increase the amount of aggregate demand that will influence to increase in real GDP. If the firms produce more goods and services because of the increase…show more content…
Monetarists agree that quantity of money supplied affects the overall price level, interest rate, exchange rate, unemployment rate and level of output in the market. The kind of monetary policy depends on the Malaysia situation. There are tight monetary policy which restrain the economy and also easy monetary policy which aggressively expand money supply and lower interest rate and also increase the investment (Firman, Kairul, Rushdan and Sherene,
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