During a recession,unemployment compensation payments increase without the need for any government action.This increase is an example of
A)discretionary monetary policy.
B)automatic monetary policy.
C)automatic fiscal policy.
D)discretionary fiscal policy.
E)government expenditure,but it is not an example of either discretionary or automatic policy.

Question

Quizplus · Accepted Answer

Automatic fiscal policy refers to government programs and policies that automatically adjust government spending and taxes in response to economic conditions. Unemployment compensation payments are one example of automatic fiscal policy, as they increase during a recession without any government action.

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