As a result of the action of automatic stabilizers,

A) the government budget changes offset changes in national income.
B) the government has had decreasing budget deficits over time.
C) taxes and government spending rise when the economy enters a recession.
D) taxes and government spending fall when the economy enters a recession.

Automatic stabilizers are mechanisms built into government budgets, without specific action by policymakers, that tend to reduce the fluctuations in national income over the business cycle. When national income falls, automatic stabilizers like progressive income taxes decrease and government spending on welfare programs increases, which offsets the changes in national income by injecting more money into the economy or taking less out. Conversely, when the economy is booming, taxes increase and spending on welfare decreases, which helps to cool down the economy.