In the context of your question, the following can be classified as policy decisions that are politically expedient but may not be economically appropriate:
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Large tax cuts during a time of economic prosperity - While politically popular, large tax cuts in a prospering economy can lead to budget deficits and potential issues with funding public services.
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Increased government spending on pet projects - Politically expedient, but these projects may not yield a high economic return or address pressing economic needs, leading to inefficient allocation of resources.
The other options:
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Preventing unnecessary economic fluctuations - This is generally considered a sound economic policy aimed at stabilizing the economy.
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Creating changes in aggregate demand - This can be part of a broader economic strategy and may not inherently be politically expedient or economically inappropriate depending on the situation.
Therefore, the correct selections are:
- Large tax cuts during a time of economic prosperity
- Increased government spending on pet projects