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

Question

Quizplus · Accepted Answer

During an economic downturn, there is less economic activity and individuals and businesses earn less income resulting in lower tax revenues than anticipated. On the other hand, the government may need to increase its spending on social welfare, unemployment benefits, and other measures to stimulate the economy, leading to higher expenditures than anticipated. Therefore, option (A) is the best choice.

During a Time of an Economic Downturn,it Is Likely That