Transfer payments are an example of a/an:
A) discretionary stabiliser.
B) countercyclical stabiliser.
C) pro-cyclical stabiliser.
D) automatic stabiliser.

Question

Quizplus · Accepted Answer

Transfer payments, such as unemployment benefits and welfare, are automatic stabilizers, meaning they automatically increase during economic downturns and decrease during economic upswings. This helps to stabilize aggregate demand and reduce the impact of economic cycles.

Transfer Payments Are an Example of A/an