Which of the following statements is true about Australia over the past one hundred years?
A) There is no strong evidence of political business cycles in Australia.
B) Under either party, output growth has been generally lower in the year preceding an election than in other years.
C) The debt- to- GDP ratio has been roughly constant.
D) Both A and B.
E) Both B and C.

Question

Quizplus · Accepted Answer

Option A states that there is no strong evidence of political business cycles in Australia. This is a true statement as several studies have been done on the matter and the evidence is not strong enough to prove the existence of such cycles.
Option B is false as output growth has not been consistently lower in the year preceding an election. There have been instances where output growth has been higher in the year before an election.
Option C is also false as the debt-to-GDP ratio has not been constant over the past one hundred years. It has varied greatly based on different economic conditions and policy decisions.
Therefore, only option D is true.

Which of the Following Statements Is True About Australia Over