According to Buchanan and Wagner,why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy,expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy.
B) In a democracy,contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy.
C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps,but not inflationary gaps.
D) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps,but not recessioinary gaps.
E) none of the above

Question

According to Buchanan and Wagner,why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy?
A) In a democracy,expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated with contractionary fiscal policy.
B) In a democracy,contractionary fiscal policy prescriptions are more policitally popular than are the policy prescriptions associated with expansionary fiscal policy.
C) They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing recessionary gaps,but not inflationary gaps.
D) ​They assert that empirical evidence has shown that Keynesian fiscal policy prescriptions have been successful at closing inflationary gaps,but not recessioinary gaps.
E) ​none of the above

Quizplus · Accepted Answer

Buchanan and Wagner argue that expansionary fiscal policy is more politically popular because it often involves increasing government spending, which can lead to short-term economic growth and job creation. In contrast, contractionary fiscal policy usually involves unpopular measures such as reducing government spending and raising taxes, which are less appealing to voters. Therefore, politicians may be more likely to support expansionary fiscal policy in order to win support and maintain their political power.

According to Buchanan and Wagner,why Is There a Political Bias