Proponents of the notion of a "political business cycle" suggest that
A)the standardized budget is a better indicator of the state of the economy than the actual budget, for political reasons.
B)cyclical swings in the economy are produced by the inherent political instability found in capitalist economies.
C)a possible cause of economic fluctuations is the use of fiscal policy by policymakers for political purposes and goals.
D)there is constant political trading among policymakers that tends to make the economic policies of state and local governments procyclical.

Question

Quizplus · Accepted Answer

Proponents of the "political business cycle" theory argue that economic fluctuations can be caused by policymakers manipulating fiscal policy to achieve political objectives, such as boosting the economy before elections to gain voter support.

Proponents of the Notion of a "Political Business Cycle" Suggest