During an economic expansion, budget revenues typically increase. This happens because economic growth leads to higher income levels, which in turn results in higher tax revenues for the government. Additionally, as businesses perform better, they pay more in corporate taxes.

On the other hand, government outlays may also increase, especially in terms of social services and infrastructure investments, but the main focus here is on budget revenues.

To summarize, during economic expansions:

1. **Increase in Income and Corporate Taxes**: As individuals and businesses earn more, tax collections rise.
2. **Higher Sales Revenues**: Increased consumer spending contributes to greater sales tax revenues.
3. **Possible Increase in Outlays**: While revenues increase, government spending can also rise but not necessarily at the same rate.

Thus, the most accurate answer from the provided choices is that during an economic expansion, budget revenues **increase**.

Question

During an economic expansion, budget revenues typically increase. This happens because economic growth leads to higher income levels, which in turn results in higher tax revenues for the government. Additionally, as businesses perform better, they pay more in corporate taxes.

On the other hand, government outlays may also increase, especially in terms of social services and infrastructure investments, but the main focus here is on budget revenues.

To summarize, during economic expansions:

1. **Increase in Income and Corporate Taxes**: As individuals and businesses earn more, tax collections rise.
2. **Higher Sales Revenues**: Increased consumer spending contributes to greater sales tax revenues.
3. **Possible Increase in Outlays**: While revenues increase, government spending can also rise but not necessarily at the same rate.

Thus, the most accurate answer from the provided choices is that during an economic expansion, budget revenues **increase**.

Knowee AI · Accepted Answer

During an economic expansion, budget revenues typically increase. This happens because economic growth leads to higher income levels, which in turn results in higher tax revenues for the government. Additionally, as businesses perform better, they pay more in corporate taxes.

On the other hand, government outlays may also increase, especially in terms of social services and infrastructure investments, but the main focus here is on budget revenues.

To summarize, during economic expansions:

1. **Increase in Income and Corporate Taxes**: As individuals and businesses earn more, tax collections rise.
2. **Higher Sales Revenues**: Increased consumer spending contributes to greater sales tax revenues.
3. **Possible Increase in Outlays**: While revenues increase, government spending can also rise but not necessarily at the same rate.

Thus, the most accurate answer from the provided choices is that during an economic expansion, budget revenues **increase**.

During an economic expansion, budget revenues:Group of answer choicesand government outlays decrease.remain constant.decrease.increase.

Question

During an economic expansion, budget revenues:

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