4. Assume that political business cycles do NOT exist. Given this assumption, we would expect, all else fixed, the output growth to be highest in which period? (a) just prior to an election. (b) just after an election. (c) in the first year of an administration. (d) in the second year of an administration (e) none of the above. [4 points] 5. The existence of the time inconsistency problem in macro policy suggests which of the following? (a) use fiscal and monetary policy to fine tune the economy. (b) reduce the independence of the central bank. (c) appoint someone who is more conservative (economically) than the rest of the government to head the central bank. (d) intervene frequently in the foreign exchange market. (e) eliminate rational expectations from econometric models used for forecasting. [4 points]