Which of the Following Typically Rises During a Recession

question 6

Multiple Choice

Which of the following typically rises during a recession?

• A)investment.
• B)unemployment.
• C)tax revenues.
• D)new home construction.

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Definitions:

FICA Tax

A federal tax in the United States that funds Social Security and Medicare, required to be paid by both employees and employers.

Federal Unemployment Tax

A federal levy paid by employers to fund the unemployment account of the federal government, used to pay unemployment benefits to workers who have lost jobs.

State Unemployment Tax

A tax imposed by state governments on employers to fund unemployment insurance benefits for workers who have lost their jobs.

Social Security Tax

Taxes collected to fund the Social Security program, providing benefits for retirees, the disabled, and survivors of deceased workers.