Question 1
During recessions, government spending usually
◦ decreases because unemployment payments decrease.
◦ increases because unemployment payments increase.
◦ decrease because unemployment payments increase.
◦ increases because unemployment payments decrease.
Question 2
Disposable income
◦ increases when net taxes increase.
◦ increases when income increases.
◦ decreases when saving increases.
◦ increases when saving decreases.