When the economy is in a recession, welfare and unemployment compensation payments _____ and tax revenues _____.

Question

Quizplus · Accepted Answer

During a recession, more people are likely to be unemployed or underemployed, leading to an increase in welfare and unemployment compensation payments. At the same time, because people and businesses are earning less, tax revenues decline due to lower income and sales tax collections.

When the Economy Is in a Recession, Welfare and Unemployment