An Economist Who Favors Smaller Government Would Recommend

Would an economist recommend a small government? 3

An economist advocating for smaller governments would suggest:

A. Reduction in taxes during recession and reduction in public expenditure during inflation.

B. Taxes increase during recession and decrease during inflation.

C. Decrease in tax during recession and increase in tax during inflation.

D. Increase public spending during recession and raise taxes during inflation.

The answer is E. Reduce government during recession and relax (government-imposed) regulations that stifle private business, cut taxes when the economy improves.

An Economist Who Favors Smaller Government Would Recommend