What is the event in the headline most likely a response to?

a. the economy is growing rapidly.
b. the economy is in a deep recession.
c. the economy has recently begun to recover from a recession.
d. the economy is showing signs of entering a recession.

The correct answer is letter A.

When the economy is growing really fast, the government is most likely to raise taxes in order to balance the economy.

Taxes and economic growth have a strong correlation, because when the economy is down, the government is most likely to decrease the tax rates in order to balance it and try to end the recession, and in a situation such as the example, the government is most likely to raise taxes when the economy is doing fine.

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