1. Which of the following is an example of an automatic stabilizer?

a. Congress legislates lower tax rates to increase consumption and investment.

b. Tax rates are increased during a recession to maintain a balanced budget.

c. A regressive income tax system reduces tax revenues (as a share of income) as income expands.

d. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.