Proponents of the notion of a "political business cycle" suggest that:
A. The standardized budget is a better indicator of the state of the economy than the actual budget, for political reasons
B. Cyclical swings in the economy are produced by the inherent political instability found in capitalist economies
C. A possible cause of economic fluctuations is the use of fiscal policy by policy-makers for political purposes and goals
D. There is constant political trading among policy-makers that tends to make the economic policies of state and local governments procyclical
C. A possible cause of economic fluctuations is the use of fiscal policy by policy-makers for political purposes and goals
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Refer to Figure 9-5. As a result of the tariff, domestic producers increase their quantity supplied by
A) 6 million pounds of coffee. B) 18 million pounds of coffee. C) 26 million pounds or coffee. D) 38 million pounds of coffee.
The constant velocity of money in the quantity equation implies that any increase in the money supply has to lead directly to:
A. a decrease in P. B. an increase in P. C. an increase in V. D. an increase in Y.