During a time of an economic downturn, it is likely that projected tax revenues will be _______ than anticipated and expenditures will be ______ than anticipated.

Question

Quizplus · Accepted Answer

During an economic downturn, tax revenues typically decrease due to lower incomes and business profits, leading to lower tax collections. Expenditures often increase as governments may spend more on social services and unemployment benefits to support those affected by the downturn.

During a Time of an Economic Downturn, It Is Likely