A rise in national income, with no change in government spending or tax rates, could cause the government's budget balance to increase.

Name: A rise in national income, with no change in government spending or tax rates, could cause the government's budget balance to increase.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

An increase in national income typically leads to higher tax revenues (due to higher incomes and consumption) without a change in government spending or tax rates, which can improve the government's budget balance.

A Rise in National Income, with No Change in Government