Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 64-70
Analysis of the Effect of Monetary Policy and Fiscal Policy on Unemployment with Economic Growth as a Moderating Variable in Indonesia
Sirojuzilam1, A. Mahendra2
1Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia
2Faculty of Economics at Universitas Katolik Santo Thomas, Indonesia
Corresponding Author: Sirojuzilam
ABSTRACT
This research is intended to know the influence of interest rate, money supply, and government expenditure on economic growth as moderating variables in Indonesia. This research population is Indonesia, and 20 of them were selected to be the samples for this research through the purposive sampling technique. Estimates conducted by the multiple regression analysis. The data used in this study were secondary, consisting of Interest Rate, Money Supply, and Government Expenditure to unemployment for the year 2000-2019. This research shows that Based on the partial test (t-test), the Government Expenditure has no significant effect. In contrast, the interest rate and money supply variables significantly affect the unemployment variables in Indonesia; the simultaneous test (F test), interest rate, money supply, and government expenditure have a significant effect on unemployment variables. Economic growth can moderate the relationship between interest rate, money supply, and government expenditure on unemployment.
Keywords: Interest Rate, Money Supply, Government Expenditure, Economic Growth and Unemployment.
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