Automatic stabilizers are economic policies and programs that help stabilize a country's economy without the need for direct government intervention. They work by automatically increasing or decreasing government spending and taxes based on economic conditions. For example, during a recession, more people may qualify for unemployment benefits, which increases government spending and helps support the economy. These stabilizers include programs like unemployment insurance and progressive tax systems. When the economy is doing well, tax revenues increase, and spending on social programs decreases, which helps cool down inflation. This automatic response helps smooth out the economic cycle, reducing the severity of booms and busts.