Which of the following is an automatic stabiliser?
A)Interest rate changes
B)Increases in government spending on infrastructure
C)Unemployment benefit payments to the unemployed
D)Reductions in nominal wages as the inflation rates rise

Question

Quizplus · Accepted Answer

Unemployment benefit payments to the unemployed are automatic stabilizers as they increase during economic downturns, providing a cushion to those who have lost their jobs, stabilizing their income levels, and reducing the impact of a recession on consumer spending.

Which of the Following Is an Automatic Stabiliser