IF the economy dips into a recession what happens?

Question

do automatic stabilizers cause tax receipts to fall or rise?

Answer 1

I think alot of people are already there....i dont think anything will be done for us. i just heard that oil went down about $8 though in the last two days. Bush is still sitting on wheather to give us another stimulus or not...

Answer 2

I doubt tax receipts fall as the economy goes under. In fact, the loss of revenue usually makes governments increase taxes during recessions to fund spending programs aimed at helping those impacted by the recession. Its a vicious cycle...

Governments need to keep taxes at or lower when economic hardships arise.

Answer 3

The economy is in a recession. All a recession is an extended period of time when the economy doesn't grow or has negative economic growth. This will go on till we have an extended period of economic growth and then they will declare that we are out of the recession. Usually during a recession taxes revenues will fall.