The political business cycle is MOST often found when:
A)monetary policy is used.
B)monetary rule is implemented.
C)activist macroeconomic policy is followed.
D)macroeconomic policies are based on technical findings such as those reported by Friedman and Schwartz.

Question

Quizplus · Accepted Answer

The political business cycle is most often found when activist macroeconomic policy is followed, which involves the government manipulating the economy to achieve short-term political goals, often at the expense of long-term stability. This can include increasing government spending or lowering interest rates leading up to an election to stimulate economic growth and improve the incumbent's chances of winning reelection.

The Political Business Cycle Is MOST Often Found When