Economic fluctuations that occur when discretionary policy is manipulated for political gain are known as _____
A) political business cycles.
B) fiscal policies.
C) monetary policies.
D) tax increases on high-income households.
E) automatic stabilizers to control demand.

Question

Quizplus · Accepted Answer

Political business cycles are economic fluctuations that occur when discretionary policy is manipulated for political gain, such as timing a fiscal stimulus or central bank interest rate change to coincide with an upcoming election. Fiscal policies, monetary policies, tax increases on high-income households, and automatic stabilizers to control demand can all be tools used to manipulate the economy for political gain, but the specific phenomenon of political business cycles refers specifically to the timing of these actions for electoral advantage.

Economic Fluctuations That Occur When Discretionary Policy Is Manipulated for Political