When the economy heads into a recession,automatic stabilizers cause

A) taxes and government spending to rise.
B) the government budget deficit to increase.
C) taxes and government spending to fall.
D) national income to increase.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust with economic conditions to stabilize income and spending.

Recession

An interval of momentary economic contraction characterized by decreased commercial and industrial operations, commonly signaled by a reduction in Gross Domestic Product over two back-to-back quarters.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal year.