Question

Question 1

Political ideologies have influenced tax policies. This can be seen when government's use tax dollars to spur economic development in countries, states and cities

Question 1 options:

	True
	False

Question 2

Most economies are subject to factors that pull them into recessions and depressions. However (all things being equal) those economies, such as the Chicagoland regional economy, which aren't reliant on one industry are less likely to suffer severe economic downturns for a sustained period of time

Question 2 options:

	True
	False

Answer 1

Question 1 TRUE

Yes, political ideologies do have an influence on what the current regime's tax policy will be. The believers of Keynesian economics advocate that government should intervene and increase its spending (through creation of jobs or giving unemployment benefits), and the spending to be financed by increased tax rates.
On the other hand, supply side economists advocate that the state should deregulate the economy and cut tax rates in order to spurt economic growth.

Question 2 TRUE

Yes, economies which do not rely on one industry are less likely to suffer severe economic downturns. This is because during recessions, other industries in the economy which are largely resistant to economic contraction would still be running and even prospering. For example, during the COVID-19 pandemic, industries such as IT, pharmaceuticals, FMCGs are still doing decent business.