When the economy is in recession, personal income tax collections
a. fall along with consumption and real GDP
b. fall but consumption and real GDP rise
c. rise providing funds for rising unemployment insurance
d. rise but unemployment insurance payments fall so incomes remain unchanged
e. fall but saving and investment rise along with real GDP
A
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A rightward shift of aggregate demand will raise output only if
A) wages remain unchanged. B) wages rise by a lower percentage than prices. C) wages rise by the same percentage as prices. D) wages rise by a greater percentage than prices.
Which of the following is correct?
a. Economic forecasts are precise and aggregate spending responds almost immediately to interest rate changes. b. Economic forecast are precise and aggregate spending responds to interest rate changes with a lag. c. Economic forecasts are imprecise and aggregate spending responds almost immediately to interest rate changes. d. Economic forecast are imprecise and aggregate spending responds to interest rate changes with a lag.