When the economy is weak,government revenues in Canada

Name: When the economy is weak,government revenues in Canada
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Question

Quizplus · Accepted Answer

When the economy is weak, people are losing jobs or working fewer hours, so they pay less income tax. Businesses make less profit so they pay less corporate tax. Consumers spend less, resulting in less sales tax revenue for the government. Therefore, government revenues decline during weak economic times.

When the Economy Is Weak,government Revenues in Canada