Multiple Choice
Which of the following best describes the idea of a political business cycle?
A) Politicians have a bias to cut taxes and increase government spending.
B) Special interests result in alternating federal deficits.
C) Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections.
D) Good intentions of politicians influence the business cycle.
Correct Answer:

Verified
Correct Answer:
Verified
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