Assume that political business cycles do NOT exist.Given this assumption,we would expect,all else fixed,the output growth to be highest in which period?
A)just prior to an election
B)just after an election
C)in the first year of an administration
D)in the second year of an administration
E)none of the above

Question

Quizplus · Accepted Answer

Without political business cycles, there would be no systematic pattern of output growth related to elections or administration terms. Therefore, it is not possible to predict the highest period of output growth.

Assume That Political Business Cycles Do NOT Exist