The Political Business Cycle Refers to

question 8

Multiple Choice

The political business cycle refers to

• A)the fact that about every four years some politician advocates greater government control of the Fed.
• B)the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
• C)the part of the business cycle caused by the reluctance of politicians to smooth the business cycle.
• D)changes in output created by the monetary rule the Fed must follow.

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Definitions:

Democratic Party

One of the two major contemporary political parties in the United States, traditionally associated with progressive and liberal policies.

Fifteenth Amendment

An amendment to the United States Constitution, ratified in 1870, that prohibits the federal government and each state from denying a citizen the right to vote based on that citizen's "race, color, or previous condition of servitude."

Democratic State Primaries

A process by which the Democratic Party in the United States selects its candidates for various elected positions in government.

Smith V. Allwright

A landmark 1944 US Supreme Court decision that ended the practice of "white primaries" by declaring it unconstitutional, thus allowing African Americans to vote in primary elections.