The political business cycle refers to the possibility that
A)incumbent politicians will be reelected regardless of the state of the economy.
B)politicians will manipulate the economy to enhance their chances of being reelected.
C)there is more inflation during Democratic administrations than during Republican administrations.
D)recessions coincide with election years.

Question

Quizplus · Accepted Answer

The political business cycle theory suggests that politicians may attempt to manipulate fiscal or monetary policy to create favorable economic conditions before an election to increase their chances of reelection.

The Political Business Cycle Refers to the Possibility That