Which of the following best describes the effect of automatic stabilizers during a period of recession in an economy?
A) Aggregate demand in the economy will be less than it would be without automatic stabilizers.
B) Aggregate demand in the economy will be the same as it was before the recession.
C) Aggregate demand in the economy will be more than it would be without automatic stabilizers.
D) The price level in the economy will decrease less than it would without automatic stabilizers.
E) The government revenue will be the same as it was before the recession.
Correct Answer:
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