Following a period of negative economic growth, explain how total government spending and tax revenues are likely to be affected.

Negative economics growth is likely to be a cause of rising demand deficient unemployment. This unemployment causes an increase in total government spending in the forms of Job Seekers Allowance as an explicit reaction, and funding training courses for those who have become unemployed - in order for them to find work elsewhere. The increase in unemployment also means tax revenues fall as fewer individuals pay income tax and National Insurance.Furthermore, indirect tax revenues are depleted following a recession as firms are making less profits and thus are generating less corporation tax.Additionally, a period of negative economic growth causes a decrease in consumption economy-wide. As a result, the revenues from taxes on goods and services (mainly value added and sales taxes) are diminished as well.