Automatic stabilizers stabilize the level of real GDP because federal expenditures and tax revenues change as the level of real GDP changes. GDP stands for gross domestic product and it's the value of all finished goods and services produced over a set period of time. Automatica stabilizers are economic policies and programs that are designed to help offset economic activity when it fluctuates during high and low times. This keeps the economy stable without the use of government or policy makers needing to intervene regularly.