When the economy is in a recession,_{--------------------} taxes decrease while spending increases and, as a result of this automatic fiscal policy, aggregate demand _{--------------------}.

Question

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During a recession, automatic stabilizers like needs-tested spending (e.g., unemployment benefits) increase and taxes decrease, which helps to increase aggregate demand.

When the Economy Is in a Recession,-------------------- Taxes Decrease While

When the Economy Is in a Recession,_{--------------------} Taxes Decrease While