The diagram below illustrates a macroeconomic transition from an initial long-run equilibrium at (Y1,P1)(Y_1, P_1)(Y1,P1) to a new equilibrium at (Y2,P2)(Y_2, P_2)(Y2,P2).
Which of the following policy combinations is most likely to achieve this transition while simultaneously addressing structural unemployment in the labour market?
An expansion of quantitative easing alongside a reduction in the standard rate of Value Added Tax (VAT)
An increase in the statutory minimum wage coupled with a rise in corporation tax on small-to-medium enterprises
A reduction in unemployment benefit entitlements combined with increased state funding for regional retraining academies
An increase in the central bank's policy interest rate combined with a reduction in government capital expenditure on transport infrastructure
