The potential conflict of economic policy with political objectives can be used to explain
A)The ups and downs in overall business activity.
B)The election of the Federal Reserve's Board of Governors.
C)Why politicians stimulate the economy before an election and restrict it afterward.
D)Illegal behavior on the part of politicians and economists.

Question

Quizplus · Accepted Answer

This choice accurately describes how politicians may use economic policy to achieve their political goals, such as stimulating the economy before an election to increase their chances of being re-elected. Economic policy may conflict with political objectives because what is best for the economy in the long run may not be politically popular or expedient in the short term.

The Potential Conflict of Economic Policy with Political Objectives Can