Increased government spending on unemployment insurance during a recession is an example of:

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Increased government spending on unemployment insurance during a recession is an example of an automatic stabilizer. Automatic stabilizers are designed to automatically mitigate fluctuations in economic activity. In this case, when the economy is in a recession, more people are likely to be unemployed and therefore depend on government assistance provided through unemployment insurance. As a result, government spending on unemployment insurance increases without the need for Congress to pass new legislation or for the President to sign a bill. This automatic increase in spending helps to stabilize the economy during a recession.

Increased Government Spending on Unemployment Insurance During a Recession Is