The existence of automatic stabilizers causes:
A. the size of any budget deficit to increase as the economy enters a recession.
B. the size of any budget deficit to decrease as the economy enters a recession.
C. the effects of a given change in autonomous expenditures on output to be larger than they would be if there were no automatic stabilizers.
D. no change in the size of the budget deficit as the economy enters a recession.
Answer:A
The existence of automatic stabilizers causes:
A. the size of any budget deficit to increase as the economy enters a recession. B. the size of any budget deficit to decrease as the economy enters a recession. C. the effects of a given change in autonomous expenditures on output to be larger than they would be if there were no automatic stabilizers. D. no change in the size of the budget deficit as the economy enters a recession.