Taxes in the United States are automatic stabilizers in that

A) tax revenues increase when income increases,thus offsetting some of the increase in aggregate demand.
B) tax revenues decrease when income increases,intensifying the increase in aggregate demand.
C) the President can increase tax rates whenever he deems such policy appropriate.
D) tax rates can be adjusted by Congress to counteract economic fluctuations.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Automatic Stabilizers

Economic policies and programs, like unemployment benefits and progressive taxation, that automatically help stabilize an economy by decreasing the effects of economic fluctuations.

Aggregate Demand

Aggregate requirement for goods and services within an economic system, evaluated at a fixed comprehensive price level over a defined period.