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

question 104

Multiple Choice

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

• A)the standardized budget is a better indicator of the state of the economy than the actual budget, for political reasons.
• B)cyclical swings in the economy are produced by the inherent political instability found in capitalist economies.
• C)a possible cause of economic fluctuations is the use of fiscal policy by policymakers for political purposes and goals.
• D)there is constant political trading among policymakers that tends to make the economic policies of state and local governments procyclical.

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Definitions:

Small Business Development Center

A local resource that provides aspiring and existing small business owners with business training, consulting, and support, often funded by government and educational institutions.

Breakeven Point

The financial point at which costs equal revenues, such that no profit is made but no losses are incurred either.

Sales And Costs

A business concept that refers to the total revenue generated from goods or services sold and the expenses incurred in the production or delivery of those goods or services.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.