For each of the following scenarios involving the US governm
For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served The government decides that it will cut taxes in an attempt to move the economy out of a severe recession. D Protective function whereby the government enforces property rights O Productive function whereby the government produces goods that are difficult for private markets to supply O Productive function whereby the government promotes economic stability through fiscal policies Maintaining competition
Solution
Option 3
At time of recession, the economic growth would be slow which makes people to earn less because of lesser spending, reduced job opportunities, and production activities. So in order to push spending and consumption the government uses tax cuts as its discretionary fiscal policies which makes to people to enough disposable income which could be saved, consumed or invested.
Option 4
It is an economic practice which intends to distribute wealth or income through direct or indirect measures from rich to poor.
