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According to the Political Business Cycle Theory, elections have a way of influencing economic indicators in a political economy. This paper tries to analyze if the elections of 1992,1996 and 2000 have affected the rates of unemployment in the USA with the help of the AD-AS model. It also tests if September 11 had a tangible effect on the unemployment rates. The methodology used is the Box-Jenkins Intervention and Transfer Modeling using RATS. I

Year: 2008
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