The potential conflict of economic policy with political objectives can be used to explain
A)The ups and downs in overall business activity.
B)The election of the Federal Reserve's Board of Governors.
C)Why politicians stimulate the economy before an election and restrict it afterward.

Question

Quizplus · Accepted Answer

Politicians may use economic policy to stimulate the economy before an election in order to increase their likelihood of being re-elected. However, after the election, they may restrict economic activity in order to combat inflation and demonstrate their commitment to financial stability. This conflict between short-term economic gains and long-term economic stability can lead to fluctuating economic policy decisions.

The Potential Conflict of Economic Policy with Political Objectives Can