When an economy goes into a recession the demand for labor
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For various reasons, fiscal policy changes automatically when output and employment fluctuate.
a. explain why tax revenue changes when the economy goes into a recession.
b. explain why government spending changes when the economy goes into a recession.
c. if the government were to operate under a strict balanced-budget rule, what would it have to do in a recession? Would that make the recession more or less severe?
Name two macroeconomic variables that decline when the economy goes into a recession.
Name one macroeconomic variable that rises during a recession.-=