Country Q has experienced a rapid increase in its unemployment rate and a sharp decline in its GDP. What might policymakers do in the face of these economic indicators?

Rising unemployment and falling GDP indicate an economic downturn, so policymakers may try to increase production and employment. Expanding trade can create demand for domestic goods and services, supporting businesses and potentially creating jobs. Choice A would further reduce spending, while raising taxes as in C could weaken demand rather than directly address the downturn.

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