Explain how built-in (or automatic) stabilizers work. When GDP is rising, tax collections, including income taxes and sales taxes, tend to Blank 1 Question 9 increase . At the same time, government payoutstransfer payments such as unemployment compensation, and welfareare Blank 2 Question 9 decreasing . Since net taxes are taxes less transfer payments, net taxes definitely Blank 3 Question 9 increase with GDP, which dampens the rise in GDP. Conversely, when the economy experiences a recession and GDP Blank 4 Question 9 decreases , tax collection Blank 5 Question 9 decreases while transfer payments Blank 6 Question 9 increases . Thus, net taxes Blank 7 Question 9 decreases along with GDP, which softens the decline in GDP