Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their reelection because the:

Question

Quizplus · Accepted Answer

Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their reelection because the political benefits, such as increased voter support and improved chances for reelection, are immediate, while the economic costs, such as higher inflation and reduced economic growth, are delayed and may not be felt until after the politician leaves office.

Politicians Have an Incentive to Push the Unemployment Rate Below