When the economy grows, ________ increase because real GDP ________.
A) tax revenues; decreases
B) tax revenues; increases
C) structural deficits; decreases
D) recognition lags; increases

Question

Quizplus · Accepted Answer

When the economy grows, real GDP increases, leading to higher income and profits. This typically results in increased tax revenues due to higher taxable incomes and corporate profits.

When the Economy Grows, ________ Increase Because Real GDP ________

When the Economy Grows, Increase Because Real GDP