If the economy were in recession, we would expect
◦ government expenditure to be high and tax revenues to be low causing a large public-sector deficit.
◦ government expenditure to be high and tax revenues to be high so that the government might have a low PSNB.
◦ government expenditure to be low and tax revenues to be low so that the government could run a public sector surplus.
◦ none of the above.