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Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their re-election because?

the expansionary monetary policy is used to finance the political campaigns

the political benefits are immediate and the economic costs are delayed

the Phillips curve is horizontal in the long run

the opportunistic seignorage gains are very large

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  1. the political benefits are immediate and the economic costs are delayed


  2. Politicians have an incentive to push the unemployment rate below the natural rate of unemployment right before their re-election because?

    the expansionary monetary policy is used to finance the political campaigns - this is correct.

    the political benefits are immediate and the economic costs are delayed - this is correct

    the Phillips curve is horizontal in the long run - this is partly correct.

    the opportunistic seignorage gains are very large - this is correct.

    But the Truth is that you cannot rely or depend on the politicians competence and knowledge to solve national or your problems. Everyone has to find out his own security mechanisms and solutuions for survival.

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