Predictions Based on the Theory of Political Business Cycles Suggest

Multiple Choice

Predictions based on the theory of political business cycles suggest that

A) presidents who succeed in reducing inflation sharply before an election have the best chance to be re-elected even if unemployment increases
B) achieving a low rate of unemployment before an election is less important than achieving a low rate of inflation
C) presidents who want to be re-elected should aim for low inflation early in their terms and then try to achieve strong economic growth before the next election
D) the practice of manipulating the economy before an election seldom pays off since voter behavior is not significantly affected by economic issues
E) none of the above