What are most government transfer programs known as?
A) as discretionary stabilizers
B) as contractionary stabilizers
C) as automatic stabilizers
D) as expansionary stabilizers

Question

What are most government transfer programs known as?  
A) as discretionary stabilizers 
B) as contractionary stabilizers 
C) as automatic stabilizers 
D) as expansionary stabilizers

Quizplus · Accepted Answer

Most government transfer programs are known as automatic stabilizers, meaning they automatically adjust to changes in the economy without requiring legislative action. These programs include unemployment benefits, Medicaid, and Social Security. They are designed to provide assistance to individuals or families who are experiencing economic hardship, which can help to stabilize the overall economy during times of recession or other economic downturns. Discretionary stabilizers, on the other hand, require legislative action and are used to actively stimulate or contract the economy as needed. Expansionary stabilizers refer to policies that encourage economic growth, while contractionary stabilizers refer to policies that slow down the economy in order to prevent inflation.

What Are Most Government Transfer Programs Known As