Which AWS compute service automatically scales resources up or down to meet application workload demands?

Explanations:

Amazon Simple Queue Service (Amazon SQS) is a message queuing service that allows decoupling of components within applications. It does not automatically scale resources based on workload demands.

Amazon EC2 (Elastic Compute Cloud) allows users to provision virtual servers. While EC2 can be manually scaled and integrated with Auto Scaling for automatic scaling, it does not inherently scale resources on its own without additional configuration.

Amazon Aurora is a relational database service that provides high availability and scalability, but it does not automatically scale compute resources up or down in response to workload demands.

AWS Lambda is a serverless compute service that automatically scales resources based on the number of incoming requests. It handles workload demands without the need for provisioning or managing servers.