Because of automatic fiscal policy, when real GDP decreases
A. government expenditures decrease and tax revenues increase.
B. government expenditures increase and tax revenues decrease.
C. government expenditures equal tax revenues.
D. the economy will automatically go to full employment.
Answer:B
Because of automatic fiscal policy, when real GDP decreases
A. government expenditures decrease and tax revenues increase. B. government expenditures increase and tax revenues decrease. C. government expenditures equal tax revenues. D. the economy will automatically go to full employment.