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Proponents of the notion of a \"political business cycle\" suggest that: A) the

ID: 1228734 • Letter: P

Question

Proponents of the notion of a "political business cycle" suggest that: A) the full-employment budget is a better indicator of the state of the economy then the actual budget. B) cyclical swing in the economy are produced by the inherent instability found in capitalist economy. C) a possible cause of economic fluctuations is due to the use of fiscal policy for political purposes. D) there is a tradeoff among goals that tend to make the economic policies of a state and local governments procyclical.

Explanation / Answer

a possible cause of economic fluctuations is due to the use of fiscal policy for political purposes.