In general, increasing levels of unemployment will lead to ______ government revenue and ______ government expenditures.

Question

Quizplus · Accepted Answer

When unemployment levels rise, individuals have less income and thus pay less in taxes, leading to a decrease in government revenue (decreasing). At the same time, as more individuals lose their jobs, they may need to rely on government programs such as unemployment insurance, welfare, and other forms of social assistance, leading to an increase in government expenditures (increasing).

In General, Increasing Levels of Unemployment Will Lead to ______