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.

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Definitions:

Incompatible Goals

Objectives that cannot be achieved simultaneously because they conflict with each other.

Mismatched Expectations

The state of having beliefs or hopes about a situation, event, or relationship that do not align with reality or the understandings of others.

Friendship Repair Rituals

Strategies or actions taken to mend and restore relationships after conflicts, misunderstandings, or disputes.

Acknowledgement

The act of recognizing or admitting the existence, truth, or fact of something.