The political business cycle refers to policies that:
A) slow down the economy in election years.
B) keep the economy on a constant growth path.
C) speed the economy up in election years.
D) run surpluses in election years.

Question

Quizplus · Accepted Answer

The political business cycle refers to policies that speed up the economy in election years to improve the reelection prospects of incumbent politicians. This can create short-term economic gains, but may be detrimental to the long-term health of the economy.

The Political Business Cycle Refers to Policies That