Question

The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of

Answer 1

Automatic stabilizers

Step-by-step explanation:

Automatic stabilizers is simply defined as government spending and taxes that immediately increase or decrease along with the business cycle. They are simply economic policies/programs prepared to limit or offset fluctuations in a nation's economic activity without intervention by the government or policymakers.

It is what it us because they act in the stability of the economic cycles and immediately are triggered without explicit government action.