Which of the Following Best Describes the Effect of Automatic

question 52

Multiple Choice

Which of the following best describes the effect of automatic stabilizers during a period of recession in an economy?

• A)Aggregate demand in the economy will be less than it would be without automatic stabilizers.
• B)Aggregate demand in the economy will be the same as it was before the recession.
• C)Aggregate demand in the economy will be more than it would be without automatic stabilizers.
• D)The price level in the economy will decrease less than it would without automatic stabilizers. ​
• E)The government revenue will be the same as it was before the recession.

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