When recessions occur, advocates of small government should recommend

Question

Quizplus · Accepted Answer

Small government advocates generally believe that reducing taxes and government intervention in the economy will lead to greater economic growth and stability. Therefore, during a recession, they are likely to recommend cutting taxes to stimulate investment and consumer spending, rather than increasing government spending or transfer payments. Reducing the number of federal employees is also a common small government recommendation, but it may not have as direct of an impact on economic activity as tax cuts.

When Recessions Occur, Advocates of Small Government Should Recommend