A decrease in taxes during a recession will always lead to an immediate increase in real GDP and a reduction in unemployment.

A decrease in taxes during a recession can help stimulate the economy, but it does not always lead to an immediate increase in real GDP or a reduction in unemployment. When taxes are lowered, people have more money to spend, which can boost consumer demand. However, if people are worried about their jobs or the economy, they might save that extra money instead of spending it, which means the tax cut might not have the desired effect right away. For example, if a family receives a tax cut but is uncertain about future job security, they might choose to save the extra money rather than go out and buy new things. Therefore, while tax cuts can help, their effectiveness depends on how people respond to the changes in their financial situation.