Proponents of the notion of a 'political business cycle' suggest that ________. a possible cause of economic fluctuations is due to the use of fiscal policy for political purposes. B there is a trade-off among goals that tends to make the economic policies of state and local governments pro-cyclical. C the cyclically adjusted budget is a better indicator of the state of the economy than the actual budget. D cyclical swings in the economy are produced by the inherent instability found in capitalist economies.
1) A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes.
2) There is a trade-off among goals that tends to make the economic policies of state and local governments pro-cyclical.
3) The cyclically adjusted budget is a better indicator of the state of the economy than the actual budget.
4) Cyclical swings in the economy are produced by the inherent instability found in capitalist economies.