Proponents of the Notion of a "Political Business Cycle" Suggest

question 130

Multiple Choice

Proponents of the notion of a "political business cycle" suggest that:

• A)the cyclically adjusted budget is a better indicator of the state of the economy than the actual budget.
• B)cyclical swings in the economy are produced by the inherent instability found in capitalist economies.
• C)a possible cause of economic fluctuations is due to the use of fiscal policy for political purposes.
• D)there is a trade-off among goals that tends to make the economic policies of state and local governments pro-cyclical.