(Answered) What are the implications of the automatic stabilizer

Economics

What are the implications of the automatic stabilizer created by government taxes and spending on the effects of shocks in long-run aggregate supply?.

a) It makes output changes smaller than they would otherwise be, but prices changes larger than they would otherwise be.

b) It makes output changes the same as they would otherwise be, but prices changes larger than they would otherwise be.

c) It makes both output changes and price changes smaller than they would otherwise be.

d) It makes output changes the same as they would otherwise be, but prices changes smaller than they would otherwise be.

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