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.