What Is the Political Business Cycle and How Does It

question 60

Essay

What is the political business cycle and how does it relate to whether the central bank should have discretion or use a rule?

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Definitions:

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in ascending order of importance.

Appetite Hormones

Biochemical substances produced in the body that regulate hunger, satiety, and food intake.

Hypothalamic Activity

Functions and regulatory processes carried out by the hypothalamus, a region of the brain controlling body temperature, hunger, and thirst.

James-Lange Theory

The theory that our experience of emotion is our awareness of our physiological responses to an emotion-arousing stimulus.