An example of the political business cycle in action came during the ________.
A)Roosevelt administration of the 1920s
B)Nixon administration of the 1970s
C)Reagan administration of the 1980s
D)Bush administration of the 2000s

Question

Quizplus · Accepted Answer

The Nixon administration of the 1970s saw a clear example of the political business cycle in action. Nixon implemented expansionary fiscal policies, including deficit spending, leading up to his reelection in 1972. However, once he was reelected, he shifted to contractionary policies, including raising interest rates and reducing government spending, in an effort to combat inflation. This led to a recession in 1973-1975.

An Example of the Political Business Cycle in Action Came