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What happens to the amount of money the government collects in taxes if unemployment is high?

2 Answers

4 votes

Answer:

C. It goes down

Step-by-step explanation:

Edge 2021

answered
User Mlorber
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When unemployment is higher, the government should lower the taxes, according to the Fiscal Policy. A decrease in tax will boost demand, income and gross domestic product of the country. Taxes are reduced and disposable income is increased and thus, the situation comes under control.
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User Rafix
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