Both environments of App Engine support automatic scaling. The steps on setting up the scaling will depend on the environment you are using and the language. The documentation
In regards to your specific inquiry of automatic scaling, our App Engine: flexible scaling parameters are defined in the app.yaml. You may refer to the following documentation
here for the available settings you can use with Python for flexible. (i.e: min_num_instances, max_num_instances, cpu_utilization, etc)
As for App Engine: standard, when you upload a version of a service, the app.yaml file specifies the
scaling type and
instance class that apply to every instance of that version. The
scaling type controls how instances are created while the
instance class determines the computing resources. You may find further details of how instance scaling works for standard with Python
here. You can specify how your application should scale by defining the scaling elements found
here. (i.e: max_instances, min_instances, max_idle_instances, min_idle_instances,etc )
Also, I believe understanding how your applications are structured on App Engine will provide some insight into the scaling you wish to achieve. The following diagrams for flex
here and standard
here illustrate the hierarchy of an App Engine app running with multiple services.
I hope this clarifies the automatic scaling behavior for both App Engine environments.