Given the desire of politicians to get reelected, they might try in the short run to use _____
A) a contractionary monetary policy.
B) an expansionary fiscal policy.
C) an expansionary monetary policy.
D) tax increases on high-income households.
E) automatic stabilizers to control demand.

Question

Quizplus · Accepted Answer

Politicians who want to get reelected would likely use an expansionary fiscal policy in the short run. This involves increasing government spending or cutting taxes to boost aggregate demand and stimulate economic growth. This approach can be popular with voters who see direct benefits from increased government spending or tax cuts, and can help to create jobs and boost consumer confidence. It is also a short-term approach that may not be sustainable in the long run without creating inflation or other economic imbalances.

Given the Desire of Politicians to Get Reelected, They Might