An increase in the unemployment rate would affect tax receipts and government expenditures by
A. reducing tax receipts and expenditures.
B. increasing tax receipts and expenditures.
C. reducing tax receipts and raising expenditures.
D. raising tax receipts and reducing expenditures.
C. reducing tax receipts and raising expenditures.
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The strong demand for housing, rising housing prices, and a construction boom from 2000 to 2005 were a result of
a. market forces that were eventually cut short by the stock market crash of 2008. b. policy changes that had positive initial effects, but negative long-term effects. c. tightened mortgage lending standards that reduced the risks of obtaining a home mortgage. d. the rising interest rates of that period, which increased the demand for housing.
Another way to think of the marginal seller is the seller who
a. will accept the lowest price of any seller in the market. b. requires the highest price of any potential seller in the market. c. would leave the market first if the price were any lower. d. would leave the market last if the price falls.