During recessions,even in the absence of any change in policy,government tax revenue automatically _______,government spending automatically _______ and,consequently,government saving _______.

Question

Quizplus · Accepted Answer

During recessions, tax revenue decreases as the incomes of individuals and businesses decrease. At the same time, government spending automatically increases as more people become eligible for unemployment benefits and other forms of social security. As a result, government saving decreases. Therefore, option B is the correct choice.

During Recessions,even in the Absence of Any Change in Policy,government