Some say that the people will have more money. The government will have no money to build more roads, more buildings, and more schools. The problem is finding a good middle between too much tax and not enough tax.
what would be the expected effect on consumer spending and on the unemployment rate if the united states government were to increase personal income tax rates
That would depend on weather or not the consumer lived in the US.
When unemployment has increased
When unemployment has increased
If consumer expected price increase for any reason in such good, he will buy it before the time he expects to apply for that increase and accordingly will increase demand and vice versa.
A recession can be characterized by: * a period of unemployment * increase in government involvement such as monetarism * cash flow is reduced. There is less consumer spending, and more saving
the higher the expected future price of product, the higher the current demand for that product and vice versa. for example, when government plans to increase the price of sugar the following week, the demand for sugar will immediatelly increase because consumer want to store for future use because of the expected higher price. if consumer expect the price cars to fall next year, the present demand for cars this year will decrease since consumer will wait for the price to fall.
They increase unemployment
the government can use its powers to increase levels of spending by consumers, businesses, and the government itself and by lowering taxes or giving tax incentives
The effects of consumer spending are reflected in in overall economy. Increase in consumer spending will mean more profits for suppliers and this translates to more revenue to the government in form of taxes.
In a free-market an increase in the supply of labor will reduce wages and increase unemployment. It will also lower the price of produced goods as wages decrease. This effect is complicated by minimum wage laws. If wages cannot decrease due to legislation the effect will simply be an increase in unemployment and prices in the short run will remain static. If the population increase is significant it is possible for the price of goods to increase due to the increased demand for consumer goods.
The answer to this question is one of these choices, for sure. I think that the answer is D. An Increase In Government Spending. A. A Depression B. A Recession C. A Decrease In Unemployment D. An Increase In Government Spending
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
increases competition increase unemployment economic restructuring increases competition increase unemployment economic restructuring