Economic Analysis Indicates That Growth in the Size of Government

question 4

Multiple Choice

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.