Answer :
B. The amount of tax revenues collected rises when an economy is booming.
Automatic stabilizers are spending and taxation changes that automatically expand or contract so as to temper business cycle fluctuations without any over action by the government. Automatic stabilizers include unemployment benefits and food stamps, which increased during down curns, and the income tax, which fluctuates with income.
Automatic stabilizers are spending and taxation changes that automatically expand or contract so as to temper business cycle fluctuations without any over action by the government. Automatic stabilizers include unemployment benefits and food stamps, which increased during down curns, and the income tax, which fluctuates with income.