During a recession, how does the automatic stimulus influence the recession?

Question

Answer

The cyclical deficit created by the government budget decreases.

Answer

The recessionary gap decreases as budget revenues fall and outlays increase.

Answer

The recessionary gap increases as budget revenues fall and outlays increase.

Answer

The structural deficit created by the government budget decreases.

Answer

Budget outlays increase with no change in revenues, so the recession worsens.

Crowdly