Which of the Following Is an Automatic Stabiliser

question 52

Multiple Choice

Which of the following is an automatic stabiliser?

• A) unemployment benefit payments to the unemployed
• B) interest rate changes
• C) increases in government spending on road works
• D) reductions in nominal wages as inflation rates rise

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Definitions:

Conditional Probability

The likelihood of an event or outcome occurring, given that another event has already occurred.

Given Event

An occurrence or outcome within a probability space that has a specified probability attached to it.

Independent Events

Two or more events whose outcomes do not affect each other, meaning the occurrence of one event does not change the probability of the other.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.