Targeting root causes of low incomes for absolute poverty reduction

Steps:

• Define absolute poverty as having income below a fixed real threshold for basic needs.
• Identify that reducing its level means raising incomes of those below the threshold.
• Evaluate options: focus on direct income boosters like employment over indirect or symptomatic factors.
• Select the option that most directly increases earnings for the poor.

Why C is correct:

• Reducing unemployment provides jobs and higher incomes, directly lifting people above the absolute poverty line per standard economic definitions.

Why the others are wrong:

• A: Cutting benefits reduces financial support, worsening poverty for the jobless.
• B: Fewer homeless addresses a symptom but ignores broader low-income causes.
• D: Lower inflation preserves purchasing power but doesn't generate new income.

Final answer: C