If citizens vote on the basis of both low inflation and low unemployment at the time of the election, then presidents might, in order to ensure their reelection:
A) spur inflation soon after their elections, and then cause a recession.
B) stimulate the economy throughout their terms.
C) cause a recession soon after their election, and then stimulate the economy.
D) run a tight monetary and fiscal policy throughout their terms.

Question

Quizplus · Accepted Answer

Presidents might cause a recession early in their term to address inflation and then stimulate the economy closer to the election to reduce unemployment, aligning with voters' preferences for low inflation and low unemployment at election time.

If Citizens Vote on the Basis of Both Low Inflation