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What happens to the amount of money the government collects in taxes if unemployment is high?
It is harder to collect.
It stays the same.
It goes down.
It goes up.
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User MelMass
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Final answer:

High unemployment usually leads to a decrease in the amount of money the government collects in taxes.


Step-by-step explanation:

When unemployment is high, the amount of money the government collects in taxes usually goes down. This is because fewer people are employed and earning income, resulting in lower tax revenue. Additionally, high unemployment often leads to government spending on unemployment benefits, which further reduces the amount of money available for tax collection.


Learn more about the impact of high unemployment on government tax collection

User Nopeva
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