Question

Multiple Select Question
Select all that apply

Which are policy decisions that are politically expedient but are not economically appropriate?
Multiple select question.

Large tax cuts during a time of economic prosperity

Increased government spending on pet projects

Preventing unnecessary economic fluctuations

Creating changes in aggregate demand

Answer 1

In the context of your question, the following can be classified as policy decisions that are politically expedient but may not be economically appropriate:

1. **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.

2. **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:

- **Preventing unnecessary economic fluctuations** - This is generally considered a sound economic policy aimed at stabilizing the economy.

- **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