CIMA Fundamentals of Business Economics BA1 Question # 14 Topic 2 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 14 Topic 2 Discussion

BA1 Exam Topic 2 Question 14 Discussion:
Question #: 14
Topic #: 2

Which of the following are known as automatic stabilizers because they tend to reduce the fluctuations in economic activity associated with the business cycle?

(i). Progressive income taxes

(ii). Unemployment benefits

(iii). Means-tested welfare benefits

(iv). Regressive taxation


A.

(i) and (iv) only


B.

(ii) and (iii) only


C.

(i), (ii) and (iii) only


D.

(ii), (iii) and (iv) only


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