How Automatic Stabilizers Work (Fiscal Policy) 

It is important to understand the difference between discretionary and non-discretionary fiscal policies. Non-discretionary fiscal policies provide countercyclical forces without policymakers needing to take action. These non-discretionary fiscal policies are known as automatic stabilizers (or built in stabilizers). Basically, automatic stabilizers are associated with how tax revenues and transfer payments behave during economic booms (inflationary gaps) and economic busts (recessionary gaps).