What are Example of automatic stabilizer?

Automatic stabilizers are economic policies and programs that automatically adjust to changes in economic conditions without the need for new legislation. Examples include unemployment insurance, which provides financial support to individuals who lose their jobs, and progressive income taxes, which increase tax rates as income rises, helping to moderate economic fluctuations. Additionally, welfare programs that provide assistance to low-income families also serve as automatic stabilizers during economic downturns. These mechanisms help to smooth out the business cycle by increasing spending during recessions and reducing it during expansions.