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 refers to the manipulation of the economy by politicians to enhance their chances of being reelected. This can include policies that stimulate the economy before an election or policies that slow down the economy after an election.

The Political Business Cycle Refers to the Possibility That