Order the following components in the sequence they would typically influence a government's budget during an economic recession: A) Increased transfer payments, B) Decreased tax revenues, C) Rising government debt, D) Potential fiscal policy actions (like spending cuts or tax increases).

During an economic recession, the sequence of how different components influence a government's budget starts with decreased tax revenues. When people earn less money or lose jobs, the government collects less in taxes. This loss leads to increased transfer payments, as the government provides more support to those in need, such as unemployment benefits. As these payments rise and revenues fall, the government may face rising debt, needing to borrow more money to cover the gap. Finally, to address these issues, potential fiscal policy actions, like spending cuts or tax increases, may be considered to stabilize the budget.