please answer the following question: 1. Suppose an economy is slowing and more and more people are losing their jobs and, therefore, paying less income taxes. If policy makers try to avoid a budget deficit by raising taxe rates, this would probably A) help pull the economy out of a depression. B) make the economic slowdown worse. C) increase inflation.
please answer the following question: 1. Suppose an economy is slowing and more and more people are losing their jobs and, therefore, paying less income taxes. If policy makers try to avoid a budget deficit by raising taxe rates, this would probably A) help pull the economy out of a depression. B) make the economic slowdown worse. C) increase inflation.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please answer the following question:
1. Suppose an economy is slowing and more and more people are losing their jobs and, therefore, paying less income taxes. If policy makers try to avoid a budget deficit by raising taxe rates, this would probably
A) help pull the economy out of a depression.
B) make the economic slowdown worse.
C) increase inflation.
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