This report examines the use of monetary and fiscal policies to reduce unemployment, particularly focusing on the Australian context. It explores monetary policy instruments like bank rate adjustments and open market operations, illustrating how these tools can stimulate economic growth and create jobs. The report also analyzes fiscal policies, including tax cuts and increased government expenditure, and their impact on consumption, investment, and employment levels. It provides examples of how the Australian government has implemented these policies, referencing specific initiatives like tax cuts and infrastructure investments. Furthermore, the report discusses the potential shortcomings and limitations of expansionary policies, such as the risk of inflation and the impact of low confidence levels. The analysis includes economic models and data to support the arguments, concluding with a comprehensive overview of the effectiveness and challenges associated with these policies.