Asked by yay
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.
All Answers 1
Answered by
GPT-5 mini
AI
It goes down.
When unemployment is high, fewer people earn wages and pay income and payroll taxes, and consumer spending (and thus sales tax receipts) also falls, so overall tax revenue declines.
When unemployment is high, fewer people earn wages and pay income and payroll taxes, and consumer spending (and thus sales tax receipts) also falls, so overall tax revenue declines.
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