Automatic stabilizers

Tax revenues are an example of an automatic stabilizer.

Which of the following best describes changes in unemployment and real GDP that cause tax revenue to increase?

(Choice A)
Real GDP is equal to the full employment output; unemployment is less than the natural rate
(Choice B)
Real GDP is lower than full employment output; unemployment is lower than the natural rate
(Choice C)
Real GDP is higher than full employment output; unemployment is lower than the natural rate
(Choice D)
Real GDP is higher than full employment output; unemployment is equal to the natural rate
(Choice E)
Real GDP is higher than full employment output; unemployment is higher than the natural rate of unemployment

AP®︎/College Macroeconomics