Which term describes policies aimed to mitigate unemployment through government aid?

The correct term that describes policies aimed at mitigating unemployment through government aid is "automatic stabilizers." Automatic stabilizers are economic policies and programs that automatically help stabilize an economy without the need for explicit government intervention during economic fluctuations. They typically include mechanisms such as unemployment benefits and welfare programs, which provide financial assistance to individuals when the economy is struggling.

During periods of economic downturn or recession, these stabilizers automatically increase government spending as more people become eligible for unemployment benefits and other aid. This increase in government spending helps support aggregate demand and can mitigate the negative effects of rising unemployment. As a result, automatic stabilizers play a crucial role in sustaining economic stability and supporting individuals during tough economic times.

Other concepts, such as demand-side and supply-side policies, refer to broader strategies to influence economic activity. Demand-side policies involve strategies to increase overall demand in the economy, while supply-side policies focus on increasing production capacity and improving the efficiency of the economy. Macroeconomic stabilization refers to a broader range of policies aimed at maintaining overall economic equilibrium and avoiding high inflation or unemployment.