When the Keynesian-cross model is in equilibrium, income equals output and aggregate expenditure equals output

The cyclical unemployment rate changes with business cycle fluctuations

Indicate whether the statement is true or false

The political business cycle refers to the phenomenon that just before elections, politicians enact ________ policies. After the elections, the bad effects of these policies (for example, ________ ) have to be counteracted with ________ policies

A) expansionary; higher unemployment; contractionary B) expansionary; a higher inflation rate; contractionary C) contractionary; higher unemployment; expansionary D) contractionary; a higher inflation rate; expansionary