During periods of expansion,automatic stabilizers cause government expenditures
A)and taxes to fall.
B)and taxes to rise.
C)to rise and taxes to fall.
D)to fall and taxes to rise.

Question

Quizplus · Accepted Answer

During periods of expansion, automatic stabilizers like unemployment benefits decrease, leading to a fall in government expenditures, while higher incomes lead to increased tax revenues, causing taxes to rise.

During Periods of Expansion,automatic Stabilizers Cause Government Expenditures