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Home Q & A Board Other Fields Homework Help Business Economics
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Selene Delray Selene Delray
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3 years ago
During an economic expansion, government transfer payments ________ and tax revenues ________.:

A)increase; stay the same

B)decrease; stay the same

C)decrease; fall

D)increase; fall

E)decrease; rise
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#1
Staff Member
3 years ago
When there is economic expansion, you see a decrease in the unemployment rate, and wages increases wages. If there are many jobs to fill, government transfer payments fall because less people are on EI or welfare. As more people work, production rises so tax revenues increase.

E
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