During an economic recovery,government tax revenue tends to ______ and government transfers tend to ______ automatically.

Question

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During an economic recovery, individuals and businesses tend to earn more income and therefore pay more taxes. This leads to an increase in government tax revenue. On the other hand, as the economy improves, fewer people may need government assistance such as unemployment benefits, so government transfers tend to decrease automatically.

During an Economic Recovery,government Tax Revenue Tends to ______ and Government