Which of the following statements is true of austerity?

Question

Quizplus · Accepted Answer

Austerity measures, such as cuts in government spending and/or increases in taxes, can lead to job losses and decreased economic activity, which in turn could result in an increased demand for social safety nets such as unemployment benefits and other forms of assistance. Austerity measures do not necessarily increase economic activity or tax revenues, and they may actually lead to job losses rather than job creation.

Which of the Following Statements Is True of Austerity