Economic analysis indicates that growth in the size of government as a share of the economy will
A) always reduce economic growth and reduce the living standards of the citizenry.
B) enhance economic growth and lead to higher income levels as it becomes larger and larger.
C) initially promote growth as the government focuses on core functions, but deter growth as government becomes larger and larger.
D) initially reduce economic growth, but eventually government will enhance growth as it becomes larger and larger.

Question

Quizplus · Accepted Answer

Initially, government spending on core functions like infrastructure and education can promote growth, but excessive government size can lead to inefficiencies and deter growth.

Economic Analysis Indicates That Growth in the Size of Government