Given the desire of politicians to get reelected,they might try in the short run to use the economic tool of
A)monetary policy
B)fiscal policy
C)dirty tricks
D)tax increases
E)increases in the price level

Question

Quizplus · Accepted Answer

Fiscal policy involves the use of government spending and taxation to influence the economy. Politicians may use this tool in the short run to stimulate economic growth and reduce unemployment in order to appeal to voters and increase their chances of getting reelected. However, the effectiveness of fiscal policy in the short run is limited by factors such as the time it takes for policies to take effect and the possibility of crowding out private investment.

Given the Desire of Politicians to Get Reelected,they Might Try