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

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As the economy enters into an expansion, employment increases, incomes rise, and consumer spending increases. This leads to an increase in tax revenues from income, sales, and other taxes, as people have higher incomes to be taxed. At the same time, transfer payments such as unemployment benefits and welfare may decrease as more people find employment and become financially stable. Therefore, tax revenues rise and transfer payments fall during an economic expansion.

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