Tax revenues automatically rise and the budget moves from deficit toward surplus as the economy moves toward a higher Blank______.

Question

Tax revenues automatically rise and the budget moves from deficit toward surplus as the economy moves toward a higher Blank______.
Multiple choice question.

unemployment rate

GDP

interest rate

cost of living

GPT-4o mini · Answer

The correct answer is **GDP**. As the economy grows and GDP rises, tax revenues typically increase due to higher incomes and business profits, which can help reduce deficits and potentially move the budget toward a surplus.