Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their reelection because the:

Question

Social Studies

Gabriel Bailey

6 October, 16:43

Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their reelection because the:

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Answers (1)

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Jayla Barnes · Answer 1

Because the political benefits are immediate and the economic costs are delayed

Explanation:

Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their reelection because the political benefits are immediate and the economic costs are delayed.

The immediate benefit is that there will be reduced unemployment and thus more favourable vote.