Like any economic crisis, unemployment rises, aggregate income falls, and tax collections drop during the Great Recession. While unemployment rises, safety net spending rises. To stabilize the economy, the government appears to have just two options: harsh austerity (reduce spending) or more borrowing. It is difficult to defend cuts in federal government programs, especially those that provide a minimum standard of living for the poor, but increasing indebtedness hurts the economy. In a few words, analyze different theoretical views on national debts
Like any economic crisis,
The national debt rises when a country's government makes extra borrowings. The unemployment rate is the proportion of a country's labor force that is unemployed and not actively seeking work. The amount of money that the nation's government receives from various taxing methods is tax collection.
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