Tài liệu The business cycle

The political business cycle
Some commentators have suggested that there is a political business cycle
whereby governments adopt tight monetary and fiscal policy soon after an election
but then adopt more expansionary policies as the election approaches to encourage a ‘feel-good’ factor

Theories of the business cycle
The multiplier-accelerator theory:
–the multiplier communicates the effects of changing investment to aggregate demand
–the accelerator assumes that firms gauge future demand by reference to past output growth
this model can produce fluctuations in output level in response to a shock