Question 31 Which of the following statements are correct? Select all that apply. A B 1 Point During a recession, the federal government spends more on transfer payments, increasing aggregate supply and counteracting the effect of the recession. Government programs that tend to reduce output fluctuations are called automatic stabilizers. C) Automatic stabilizers only reduce the rate of change of GDP; they do not alter the direction of change of GDP. D As unemployment grows, unemployment insurance payments increase, shifting the aggregate demand curve to the right, helping to expand the economy.