Unemployment: Due to a new wave of the pandemic, the Reserve Bank of India has decreased interest rates to an 'all-time low' from 4.40% to 4%, to represent its commitment to implementing accommodating policies. This decision was also made in an effort to support economic recovery. As a result of the decrease in interest rates, it reduces the costs of loans for firms. Thus, they can potentially increase their investment to increase output, which could help reduce unemployment. Furthermore, this decrease in interest rates further benefits consumers as it improves their level of earnings (their costs of loans are lower). However, as a result of increased spending/investment, it could lead to increases in AD creating inflationary pressures in the long run.