benefits

• What happens to tax revenues as more goods and services are bought?

  Tax revenues will rise
• Why do tax revenues increase according to the study material?

  More goods, services, income, and profits are generated
• How does an increase in tax revenues affect government spending?

  It provides more money for public services
• What systems can be improved with increased tax revenues?

  NHS, education, and benefits systems
• How does improving public services impact living standards?

  It helps to improve living standards
• What is one potential outcome of increased tax revenues regarding the budget deficit?

  It can help reduce the budget deficit
• What could happen if the budget deficit is reduced significantly?

  A budget surplus may be achieved
• What can a budget surplus allow the government to do?

  Save money for future recessions