Unemployment benefits and other social spending are also designed to rise during a downturn. These cyclical changes make fiscal policy automatically expansionary during downturns and contractionary ...

Unemployment benefits and other social spending are also designed to rise during a downturn. These cyclical changes make fiscal policy automatically expansionary during downturns and contractionary ...

In response to the expected increase in unemployment ... given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms of output.