Which of the Following Best Defines the Political Business Cycle

question 103

Multiple Choice

Which of the following best defines the political business cycle?

• A)the fact that about every four years some politician advocates greater government control of the Bank of Canada
• B)the potential for a central bank to increase the money supply and so output 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)the changes in output created by the monetary rule the Bank of Canada must follow

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core activities.

List Price

The published price of a product or service, often suggested by the manufacturer or service provider, before any discounts or negotiations.

Standard Amount

A pre-determined or fixed quantity used as a benchmark, reference, or norm for measurements, production, or financial assessments.

Net Worth

The total value of an individual's or entity's assets minus their liabilities; a measure of financial health.