automatic stabilizers

economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers on an individual basis

corporate and personal taxes and transfer systems (unemployment insurance and welfare)

they act to stabilize economic cycles and are automatically triggered without explicit government action

a progressive taxation structure, the shares of taxes if national income falls when the economy is booming and rises when the economy is Ina slump

prevent the negative consequences relating to unexpectedly high growth rates or recessions

a particular event within an economy and is applied to an entire region, based on specific qualifications

automatic stabilizers may result in higher budget deficits

the higher level of benefit payouts being used to support individuals or businesses in the economy, as well as the fall in the total amount of revenue being received