The fact that taxes and government spending change whenever the state of the economy changes results in
A)more severe recessions and booms.
B)a more destabilized economy.
C)the need for more discretionary policy.
D)less severe recessions and booms.
E)the need for Federal Reserve intervention.

Question

Quizplus · Accepted Answer

Automatic stabilizers, such as taxes and government spending, adjust with the economy's performance, helping to dampen the extremes of recessions and booms, thus making them less severe.

The Fact That Taxes and Government Spending Change Whenever the State