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Lorico [155]
3 years ago
12

What happens to the amount of money the government collects in taxes if unemployment is high?

Social Studies
1 answer:
AfilCa [17]3 years ago
4 0
When unemployment is higher, the government should lower the taxes, according to the Fiscal Policy. A decrease in tax will boost demand, income and gross domestic product of the country. Taxes are reduced and disposable income is increased and thus, the situation comes under control.
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