A laissez faire policy approach during a recession would advocate
A)Noninterference by the government.
B)Increasing AS by funding programs that improve worker skills.
C)Increasing AD by increasing government spending.
D)Increasing both AD and AS.

Question

Quizplus · Accepted Answer

A laissez faire policy approach during a recession advocates for noninterference by the government, which means that the government should not intervene in the market to stimulate the economy through fiscal or monetary policies. Instead, the market should be left to adjust on its own without any intervention. This approach assumes that the economy will eventually self-correct and return to equilibrium, without any government intervention.

A Laissez Faire Policy Approach During a Recession Would Advocate