Which of the following statements is true ?
A)A political business cycle is one created by the incentive for politicians to manipulate the economy to get re-elected.
B)Adaptive expectations theory argues that the best indicator of the future is recent information.
C)Incomes policies tend to be ineffective over time.
D)Incomes policies include jawboning, wage-price guidelines, and wage-price controls.
E)All of these.

Question

Quizplus · Accepted Answer

All the statements are true: A political business cycle involves economic manipulation for re-election; adaptive expectations rely on recent data; incomes policies often lose effectiveness; and incomes policies include jawboning, guidelines, and controls.

Which of the Following Statements Is True