Question

Congress might lower taxes if the economy appears to be in

Answer 1

B. A recession period. This problem can be solved in two ways. The first would be to group the answers by their relationship with the economy, A, C, and D are all periods of economic growth. B. is the only one that identifies with stagnation or a negative period of growth. The second option is to identify the reason behind tax cuts during a recession. Tax cuts reduce expenditures for all economic parties involved, except for the government, which would increase the national debt, but the attempt is to  stimulate the economy like President Ronald Reagan did with tax cuts during the 1980s, later accepting some increases in taxes after the economy started to expand.