During recessionary periods

A) tax revenues fall proportionately faster than does national income.
B) budgetary surpluses are generated.
C) decreases in nominal income are accelerated as tax revenue decreases.
D) higher tax revenues are generated by progressive income taxes.
E) the Congress must lower taxes if full employment is to be achieved.

Recessionary Periods

Times characterized by a significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

National Income

The total amount of money earned within a country from the production of goods and services over a specific period of time.