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Q: Laissez faire" economics recommends (Points : 1) higher taxes. lower taxes. allowing a free market to operate. strict wage and price controls.
A: allowing a free market to operate. The U.S. economy is another example. The laissez-faire policy would have recommended cutting taxes on businesses and wealthy individuals, cutting federal spending, and further reducing federal regulations. Does anyone really believe that the way out of this $2 trillion GDP hole is to just cut taxes and cut federal spending? The U.S. economy needs stimulus -
lots of stimulus - to compensate for the $2 trillion recession hole - not just tax cuts that may or may not be invested in domestic assets.
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Asked 6/23/2012 10:17:55 AM
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