What happens to the amount of money the government collects in taxes if unemployment is high?

a. It is harder to collect.

b. It stays the same.

c. It goes down.

d. It goes up.

The correct answer is option C. When unemployment is high, the collection of taxes by the government will go down or will decrease. Most of the taxes collected by the government mostly comes from people working. When unemployment is high, people paying taxes are low. Therefore, collection as well goes down.