Question

In one or two paragraphs, argue whether governments should help fix the economy when it slows down or whether they should leave it alone and let it fix itself. Support your argument with facts or examples.

Answer 1

Answer:

Explanation:

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Substantial support for states from the federal government can alleviate budgetary pressures from increased spending on public health, unemployment, as well as reductions in consumption-based revenue. At the same time, a decrease in economic activity means lower tax revenues for states.

The government provides the legal and social framework within which the economy operates, maintains competition in the marketplace, provides public goods and services, redistributes income, corrects for externalities, and takes certain actions to stabilize the economy.

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