Editing Automatic stabilizer (section)

===Transfer payments===
Most governments also pay [[unemployment]] and [[Welfare (financial aid)|welfare benefits]]. Generally speaking, the number of unemployed people and those on low incomes who are entitled to other benefits increases in a recession and decreases in a boom. As a result, government expenditure increases automatically in recessions and decreases automatically in booms in absolute terms. Since output increases in booms and decreases in recessions, expenditure is expected to increase as a share of income in recessions and decrease as a share of income in booms.<ref>Transfers are neither part of government expenditures nor consumption and do not contribute to GDP. Therefore, they can not be an automatic stabilizer, which contributes to GDP. See Principles of Economics, Bernanke, et al., 2016, page 413 https://www.amazon.com/Principles-Economics-Irwin-Robert-Frank/dp/0078021855</ref>