--%>

Describe the notion of political business cycle

Describe the notion of political business cycle. 

E

Expert

Verified

A political business cycle is the perception that politicians are more interested in re-election than in stabilizing the economy.  Before the election, they enact tax cuts and spending raise to make happy voters even though it may fuel inflation.  After the election, they apply the brakes to hold back inflation; the economy will slow and unemployment will increase.  In this view the political procedure creates economic instability.

   Related Questions in Finance Basics

  • Q : Effect of raising funds on rapidly

    Companies along with rapidly growing levels of sales do not require worrying about raising funds from outside the firm. Do you agree or disagree along with this statement? Describe. Disagree. Quickly growing firms require more assets to accom

  • Q : Explain Financial Reporting Financial

    Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.

  • Q : Types of legal barriers to market entry

    Types of legal barriers to market entry exist: Kinds of legal barriers which make that difficult for the newer drug in the generic form towards entering market have been lack of the rigorous assessment about the patentability needs; thirty mouth stay

  • Q : What is Recall and Redemption What is

    What is Recall and Redemption:Recall: The power of electors to eliminate an elected officer.Redemption: This is the act of redeeming a bond or other security by issuing an agency.

  • Q : Define Final Budget Summary Final

    Final Budget Summary: A document generated by the Department of Finance subsequent to enactment of the Budget Act that reflects the Budget Act, any vetoes to the language and/or appropriations, technical corrections to the Budget Act, and summing up t

  • Q : Which insurance company takes on the

    Which kind of insurance company usually takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks sheltered against by property and casualty companies are much less predictable than are the risk

  • Q : Resources flow Normal 0 false false

    Normal 0 false false

  • Q : Explain the role of a dealer in the OTC

    Normal 0 false false

  • Q : Inflationary expenditure gap or

    Normal 0 false false

  • Q : Basic determinant of transactions

    Normal 0 false false