Purchase Solution

The Political Business Cycle

Not what you're looking for?

Ask Custom Question

Do incumbent politicians use their power and influence to get re-elected? Is this a "valid" use of political power? How does this impact business firms? Please discuss these questions.

Purchase this Solution
Solution Summary

This question explores the political economy and ethical implications that must be considered when incumbents utilize their status to retain power, discussing how this impacts the broader economy and society.

Solution Preview

Yes, incumbent politicians use their power and influence to get re-elected. This is a truism of politics. Of course, the extent differs across countries, but in general there have been studies that show the "political business cycle" and how politicians influence economic cycles (early work from Barro and Alesina tried to model this, how the median voter would react to bursts of inflation that might raise employment).

For being "valid," this all depends upon how you define what the political system does. In most political systems, even liberal democracies, the explicit goal of politics is ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Business Cycle

    314897 Business Cycle What is a Business Cycle? Explain what happens to Economic growth and Consumption at each stage of the cycle. At which stage of the Business cycle is your firm right now and why? Thank you! I really appreciate it!

  • Policians: Economic Growth

    568857 Policians: Economic Growth The U. S. and the World economy is still in a period of slow growth and high unemployment. Since we in the U. S. are already in an election year, does the Political Business Cycle still exist?

  • GDP, employment increase, and inflation increase

    Generally, during a business expansion period of the business cycle, GDP, employment increase, and inflation increase. GDP increases by the fact that business activity increases.

  • Business Cycle

    252596 Business Cycle Analysis of the Business Cycle. What is the Business Cycle and what factors causes the changes in the Business Cycle? This is a Master's Level Economics Class...

  • Definition of a recession

    Recession is one of the phase of Business cycle. Business cycles are the cyclical movements in the economy. During an expansion, output and employment rises and unemployment falls. At this stage consumption increases.

  • Fiscal Policy Timing

    The theory of political business cycle holds that cycles result from the election of political parties with different policy regimes.

  • Electric Cycle Business Environment

    619504 Electric Cycle Business Environment 1. Select a African country and apply the PESTEL model for an analysis of the environment for electric bicycles.

  • macro-environment forces

    For instance, the business cycle is a macro environmental factor. Companies regularly examine these forces and seek opportunities.

  • Computerization

    297844 Computerization Analyze a business task one would like to computerize. How could one use the steps of the information systems development life cycle?

View More Related Solutions