In which of the following political systems would a political business cycle be more likely to occur?
A)a democracy with elections that occur on a regular basis
B)a parliamentary
C)communist-type economies
D)socialist-type economies
E) a democracy with elections that occur on an irregular basis

Question

Quizplus · Accepted Answer

A political business cycle is more likely to occur in a democracy with elections that occur on a regular basis because politicians may be tempted to implement policies that will boost the economy in the short term in order to increase their chances of re-election, even if these policies may have negative long-term consequences.

In Which of the Following Political Systems Would a Political