Which of the following best describes the idea of a political business cycle?
A)Politicians are more willing to cut taxes and increase government spending than they are to do the reverse.
B)Fiscal policy will result in alternating budget deficits and surpluses.
C)Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections.
D)Despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle.

Question

Quizplus · Accepted Answer

Politicians may manipulate fiscal policy to boost the economy before elections to gain voter support, leading to increased output, real incomes, and employment.

Which of the Following Best Describes the Idea of a Political