Recall the Application about the links between presidential elections and macroeconomic performance to answer the following question(s). Early theories on the links between presidential elections and macroeconomic performance focused on incumbent presidents trying to manipulate the economy in their favor to gain reelection. Subsequent research began to incorporate other factors. The first innovation was recognizing that political parties can have different goals or preferences on how to manipulate the economy. In the United States, Republicans historically have been more concerned about fighting inflation, whereas Democrats have concentrated on reducing unemployment. The second major innovation was recognizing that the public would anticipate that politicians will try to manipulate the economy before an election.
-If Republicans are primarily concerned with controlling inflation and Democrats are primarily concerned with controlling unemployment, then Republicans would tend to focus on ________ economic policies and Democrats would tend to focus on ________ economic policies.
A) expansionary; expansionary
B) contractionary; contractionary
C) expansionary; contractionary
D) contractionary; expansionary

Question

Quizplus · Accepted Answer

Republicans, focusing on controlling inflation, would lean towards contractionary economic policies to slow down the economy and reduce inflation. Democrats, aiming to reduce unemployment, would favor expansionary economic policies to stimulate economic growth and create jobs.

Recall the Application About the Links Between Presidential Elections and Macroeconomic