During a recession,unemployment benefit payments increase without the need for any government action.This increase is an example of

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Automatic fiscal policy refers to the automatic stabilization of the economy through government spending and taxation policies without any deliberate maneuvering by the government. During a recession, as more people lose their jobs, the number of people eligible for unemployment benefits increases, and the government ends up spending more money on these benefits. This increase happens automatically without the need for any government intervention, making it an example of automatic fiscal policy.

During a Recession,unemployment Benefit Payments Increase Without the Need for Any