During a recession, the political incentive structure will encourage politicians to
A) undertake sound economic policies that are consistent with stability and growth.
B) adopt any policies, even bad ones, that give the appearance of taking action.
C) undertake policies that promote long-term economic growth rather than short-term benefits.
D) do nothing and let the recession run its course.

Question

Quizplus · Accepted Answer

During a recession, politicians often face pressure to show they are taking action to address economic issues, which can lead them to adopt policies that may not be economically sound but give the appearance of addressing the problem.

During a Recession, the Political Incentive Structure Will Encourage Politicians