An example of an automatic fiscal policy stabilizer is when

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An automatic fiscal policy stabilizer refers to the automatic changes in fiscal policy that occur in response to changes in economic activity without any need for explicit action by the government. A decrease in tax revenues due to a decrease in real GDP is an example of an automatic fiscal policy stabilizer as it helps to stabilize the economy during economic downturns by providing a cushion to households and businesses. This is because as people's incomes decrease during an economic downturn, their tax liability decreases as well, which helps to boost their disposable income and, in turn, consumption spending.

An Example of an Automatic Fiscal Policy Stabilizer Is When