Active stabilization policies can be pursued by either increasing the size of government or decreasing it. If the government wishes to bring the economy back to full employment by decreasing the size of government, then policy makers should: Active stabilization policies can be pursued by either increasing the size of government or decreasing it. If the government wishes to bring the economy back to full employment by decreasing the size of government, then policy makers should: in a recession increase government expenditures and in inflation increase taxes. in a recession decrease government expenditures and in inflation decrease taxes. in a recession decrease taxes and in inflation decrease government expenditures. in a recession increase taxes and in inflation decrease government expenditures