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