This question is about the automatic fiscal stabilizers and related issues. Assume there is a negative shock to private aggregate demand (i., a...

This question is about the automatic fiscal stabilizers and related issues.   

      i.  Assume there is a negative shock to private aggregate demand (i.e., a negative shock to C, I, or NX). Explain how the automatic fiscal stabilizers limit the decline in output in the short run.  (10 points)