Widespread unemployment sharply cuts government tax revenues that generally lead to reductions in the services provided by the government.

Question

​Widespread unemployment sharply cuts government tax revenues that generally lead to reductions in the services provided by the government.

Quizplus · Accepted Answer

When there is widespread unemployment, fewer people are paying income taxes and the government also has to spend more on safety net programs such as unemployment insurance. This leads to a reduction in government tax revenues and often results in cuts to services provided by the government.

​Widespread Unemployment Sharply Cuts Government Tax Revenues That Generally Lead

Widespread Unemployment Sharply Cuts Government Tax Revenues That Generally Lead