An Increase in Real GDP Shortly Before a Presidential Election

question 19

Multiple Choice

An increase in real GDP shortly before a presidential election could signal the start of

• A)a political business cycle.
• B)an economy-wide supply shock.
• C)a real business cycle.
• D)a permanent reduction in the inflation rate.
• E)long-term economic growth.

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Definitions:

Third Sector

The segment of an economy or society that is composed of non-governmental organizations and other non-profit groups that provide public services and goods.

Globalization

The process of interaction and integration among people, companies, and governments worldwide.

Shallow Integration

A term in international trade referring to the reduction of tariffs and quotas, while deeper integration involves more extensive agreements that address beyond-the-border barriers.

Deep Integration

involves extensive coordination and harmonization of economic, social, and political policies between countries or organizations to achieve closer union.