The increase in government spending on Employment 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

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The situation described in the question is an example of automatic stabilizers. Automatic stabilizers are economic policies that automatically react to changes in the economy without discretionary action by policymakers. In this case, as the economy enters a recession, more workers are laid off, and government spending on Employment Insurance payments to these workers automatically increases. This increased government spending helps to stabilize the economy by providing income support to workers who have lost their jobs. As the economy enters an expansion, fewer workers are laid off, and government spending on unemployment insurance payments automatically decreases, helping to stabilize the economy by reducing government spending.

The Increase in Government Spending on Employment Insurance Payments to Workers