Increasing government spending usually
a) increases unemployment rate
b) descended unemployment rate
c) increases stagflation rate
d) decreases stagflation rate

The correct answer is B.

If goverment spending is increased, investment and/or production activities are conducted using public money, which in turn increase the GDP (Gross Domestic Product) figures and therefore bring economic growth. Such investments usually require hiring people to conduct the projects, and therefore help to decrease unemployment figures.

Moreover, it could also be possible that the increase in goverment spending could be directed to a policy which directly adresses unemployment issues, such as for example, the introduction of a subsidy given to employers to foster hiring.