Everything else remaining the same, as the economy enters an expansion,

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As the economy enters into an expansion, individuals and businesses earn higher incomes, leading to higher tax revenues for the government. At the same time, as the economy grows and creates jobs, fewer individuals need to rely on government transfer payments such as unemployment insurance and welfare, leading to a decrease in transfer payments. Therefore, tax revenues rise and transfer payments fall during an economic expansion.

Everything Else Remaining the Same, as the Economy Enters an Expansion