Which of the Following Best Describes the Notion of a "Political

question 210

Multiple Choice

Which of the following best describes the notion of a "political business cycle"?

• A)Politicians are more willing to cut taxes and increase government spending than they are to do the reverse.
• B)Fiscal policy will result in alternating budget deficits and surpluses.
• C)Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections.
• D)Despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle.

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Definitions:

Binding Contract

An agreement between two or more parties that is legally enforceable.

Preprinted Terms

Agreements or forms that have standard conditions and text already printed on them before they are used, requiring only specific details to be added.

Handwritten Terms

Conditions or clauses manually written into a legal document or contract, which can sometimes hold precedence over printed text.

Ambiguous

Lacking clearness or definiteness; difficult to comprehend, distinguish, or classify due to having more than one possible interpretation.