What is the impact of automatic stabilizers on disposable income as the economy moves through the business cycle?

The purpose of automatic stabilizers is to increase
disposable income when an economy is in recession and to decrease it (to some extent)
when an economy is in a period of expansion.  Automatic stabilizers are not able to
completely smooth out the business cycle, but they are meant to help flatten the cycles
out -- to prevent recessions from being too deep and expansions from going too fast and
causing inflation.

For example, unemployment insurance is
an automatic stabilizer that kicks in during a recession.  When people lose their jobs,
these benefits increase their disposable income.  The unemployed are then able to keep
spending to some extent so that aggregate demand will not drop too
much.

During an expansion, a progressive income tax acts as
something of an automatic stabilizer.  As incomes rise, the income tax takes some of
that money away, decreasing disposable income and helping to prevent excessive
inflation.