Economics 9708 · AS & A Level · Government macroeconomic policy objectives

Government macroeconomic policy objectives — practice question

Which pairing of income tax and government benefit payment systems would lead to automatic stabilisation?

  • Abenefit payments: means tested; income tax: progressive
  • Bbenefit payments: universal; income tax: progressive
  • Cbenefit payments: means tested; income tax: regressive
  • Dbenefit payments: universal; income tax: regressive

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