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

2 Answers

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Answer:

C. It goes down

Step-by-step explanation:

Edge 2021

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.
User Rafix
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