When the economy is growing steadily, rising tax revenues and declining transfer payments have a contractionary effect on the economy.

Name: When the economy is growing steadily, rising tax revenues and declining transfer payments have a contractionary effect on the economy.
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When the economy is growing steadily, rising tax revenues and declining transfer payments reduce aggregate demand, leading to a contractionary effect on the economy.

When the Economy Is Growing Steadily, Rising Tax Revenues and Declining