Ask Question
6 August, 11:38

Suppose that the economy is presently operating at full employment. If there is a decrease in national income, which of the following will occur automatically?

A. Upper A decrease in tax rates.

B. Upper A decrease in tax revenues.

C. An increase in tax rates.

D. Upper A decrease in unemployment compensation spending.

+1
Answers (1)
  1. 6 August, 11:45
    0
    option B

    Explanation:

    The correct answer is option B.

    If national income decreases the government will automatically decrease in tax revenue.

    A tax revenue is the gain by the government through taxation.

    Tax revenue is the revenue collected by the government on the income, profits.

    If national income decreases the personal income of the people will also decrease hence the expenditure by the people of the country also decreases which lead to decrease in tax collection.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that the economy is presently operating at full employment. If there is a decrease in national income, which of the following will ...” in 📗 Social Studies if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers