question_answer

      If a government budgets for a surplus and there is an unexpected increase in the level of economic activity, which of the following is likely to occur?

A) There will be an increase in tax revenues and an increase in the budget surplus

B) There will be an increase in tax revenues and a decrease in the budget

C) There will be a decrease in tax revenues and an increase in the budget surplus

D) There will be a decrease in tax revenues and a decrease in the budget surplus