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.
Correct Answer:
Verified
Q105: The public debt is held as
A) U.S.
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Q108: The immediate primary cause of the swing
Q109: The crowding-out effect is
A) strongest when the
Q111: Increases in the federal budget deficit from
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