1)Comment critically on the following statements: Big government is bad for the economy

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1)Comment critically on the following statements: Big government is bad for the economy. A country with a bigger welfare state is less dynamic. Its workers are less compelled to work, while its entrepreneurs are less motivated to create wealth.

2)Critically comment: Orthodox economists consider that labour demand is a decreasing function of the real wage rate. Therefore, a decrease in real wages must result into an increase in overall aggregate output.