A shock absorber which makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP is called...... Option 1: Automatic stabiliser. Option 2: Government spending. Option 3: Fiscal policy. Option 4: Monetary policy.

The answer is 'Automatic stabiliser.'. View full solution:

CUET Economics - A shock absorber which makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP is called...... | PYQs + Solutions

CUET Economics 2025 22 May Shift 1

Macro

Medium

Automatic stabiliser.

Government spending.

Fiscal policy.

Monetary policy.

✅ Correct Option: 1