Income and revenue from taxes have a specific relationship during recessions. What is it?
A) incomes fall, tax revenue increases B) incomes rise, tax revenue decreases
C) incomes fall, tax revenue decreases D) incomes rise, tax revenue increases
Question 2
Which of the following is true of economic expansions?
A) Economic expansions are defined as the period between recessions.
B) Consumption increases but investment falls during periods of economic expansion.
C) Output grows during periods of economic expansion, but the unemployment rate is also high.
D) Governments can correctly predict the length of periods of economic expansion.
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