The Automatic Stabilization Process Can Be Described as Follows

The automatic stabilization process can be described as follows:

A) increasing output leads to higher taxes, which leads to higher transfers, which leads to higher employment and income.
B) increasing output leads to higher employment and income, which leads to lower taxes, which leads to higher transfers.
C) falling output leads to lower employment and income, which leads to higher taxes, which leads to higher transfers.
D) falling output leads to lower taxes and higher transfers, which keeps employment and income from falling as much as it otherwise would.