Why Are Income Taxes in Canada Considered to Be Automatic

Multiple Choice

Why are income taxes in Canada considered to be automatic stabilizers? Because

A) tax revenues increase when income increases,thereby offsetting some of the increase in aggregate demand.
B) tax revenues decrease when income increases,thereby intensifying the increase in aggregate demand.
C) tax structures can be changed when the Minister of Finance brings down a budget.
D) tax revenues are changed through discretionary fiscal policy to keep the budget balanced.
E) tax revenues are changed through discretionary fiscal policy to create surpluses in recessions.