A shock absorber which makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP is called.

Automatic stabiliser.

The correct answer is Option (3) → Automatic stabiliser.

An automatic stabiliser is a fiscal tool that reduces the sensitivity of disposable income and consumer spending to fluctuations in GDP without requiring new government action each time. Examples include progressive income taxes and unemployment benefits. When the economy slows down and incomes fall, taxes automatically decrease and government transfers (like unemployment benefits) increase, helping to maintain consumption. Conversely, during a boom, rising incomes lead to higher taxes and lower transfer payments, which dampen excessive demand. This built-in response helps to stabilise the economy automatically, hence the term automatic stabiliser.