As Income Increases During the Recovery from a Recession, Automatic

Multiple Choice

As income increases during the recovery from a recession, automatic stabilizers will:

A) increase taxes and increase government spending, increasing the overall size of the government.
B) reduce taxes and increase government spending, accelerating the recovery.
C) increase taxes and decrease government spending, slowing the recovery.
D) reduce taxes on high-income individuals and raise taxes on the poor, increasing economic inequality.