单选题 When an economy dips into a recession, automatic stabilizers will tend to alter government spending and taxation so as to:

A、 reduce the budget deficit (or increase the surplus).
B、 enlarge the budget deficit (or reduce the surplus).
C、 ensure that the budget will remain in balance.

【正确答案】 B

【答案解析】During a recession unemployment is high, so the government will pay out more in unemployment compensation at the exact time that tax receipts from corporations and individuals are low. This will increase the size of the deficit and also maintain aggregate demand during recessionary periods.