I am needing some info on automatic stabilizers??? And how they impact the bus. cycle.?

Question

I have an economic question to answer explaing automatic stabilizers and how they have an impact of the business cycle. Please help if possible.

Answer 1

One is that when the economy weakens, unemployment rises and therefore government spending on unemployment benefit rises, while tax revenues from income, profits, capital gains, and value added taxes all fall. So the budget deficit widens, which supports the economy to recover ("Keynesian reflation").