The best known prediction of the theory is that the business cycle mirrors the timetable of the election cycle. Incumbent governments, in general, will use restrictive policies early in their elected tenure raising unemployment to reduce inflation, as the election approaches. The theory highlights the tendencies of incumbent governments to generate pre-election booms through expansionary fiscal policies.
Once the incumbents get re-elected, the policy priorities could change towards inflation control rather than employment generation. In this respect, the theory in a way highlights the time inconsistency behaviour of governments.