Which of the Following Is True of Automatic Stabilizers

question 74

Multiple Choice

Which of the following is true of automatic stabilizers?

• A)They increase aggregate demand during a recession and decrease aggregate demand during an economic expansion
• B)They decrease aggregate demand during a recession and increase aggregate demand during an economic expansion
• C)They do not have any effect on aggregate demand during a recession but increase aggregate demand during an economic expansion
• D)They decrease aggregate demand during a recession but do not have any effect on aggregate demand during an economic expansion.
• E)They decrease the price level during a recession but do not have any effect on the price level during an economic expansion.

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