When all else is held constant,during recessions government

Question

Quizplus · Accepted Answer

During recessions, tax revenues tend to decrease as a result of decreased economic activity and increased unemployment. At the same time, government expenditures tend to rise due to increased needs for unemployment benefits and other social safety net programs. Therefore, the best choice is C, which indicates that revenues decrease and expenditures rise when all else is held constant during recessions.

When All Else Is Held Constant,during Recessions Government