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 typically prioritize short-term gains, such as winning reelection, over long-term consequences, such as the potential negative effects of pushing unemployment below its natural rate. The benefits of lower unemployment, such as increased job creation and decreased poverty, are often immediately visible to voters, while the costs, such as inflation and possible future economic downturns, may not be felt until after the politician is out of office.

Politicians Have an Incentive to Push the Unemployment Rate Below