If the economy is to have built-in stability,when real GDP falls

A) tax revenues and government transfer payments should fall.
B) tax revenues and government transfer payments should rise.
C) tax revenues should fall and government transfer payments should rise.
D) tax revenues should rise and government transfer payments should fall.

Built-In Stability

refers to automatic fiscal policies and regulations that stabilize economic fluctuations without additional government intervention.

Real GDP

The measure of a country's economic output adjusted for price changes and inflation.

Tax Revenues

The income that is gained by governments through taxation, a primary source of public finance.