Question

Discuss Elections and the Economy, as you heard in the debates and town hall meetings during the last election, the candidates often differed on the state of the economy. With thatin mind, what are two macroeconomics indicators that you would use to assess the economy's condition over the next six months? Please indicat why you selected them and give me something ASAP not already on this chegg site.

Thank You!

Answer 1

Elections in U.S. and across the globe are marked with the introduction of policies that are economic disasters however they have political gains. In the long run the rollout of schemes of welfare will become unsustainable is a common ploy that is often used by parties that are in power to woo the voters. The manipulation may not work when there are rational voters and likely to elect a government on the basis of the performance in the long term. But unfortunately, that is not the scenario. In actual usually the voters focus on the benefits in short term that they would like to receive which causes governments to spend a lot of money trying to appear themselves good just before the elections.

Immediately after the election is over, the condition of economy over the next six months would be changed with the decisions of politicians. There would be a reverse course by increasing of taxes, slowing the growth of the money supply, cutting spending, allowing increase of the rates of interest, etc. The period of election is marked with a rise in spending by each of the political parties and a rise in inflation.