Rational partisan theory and the business cycle

Question 1

Hibbs suggested that in industrial democracies, left and right wing parties differ on their preferred combinations of:

Answer 1

Output and unemployment

Question 2

Hibbs analysis included an exploitable trade off between:

Answer 2

Inflation and unemployment

Question 3

Did Hibbs suggest that left wing parties are more concerned with inflation or unemployment?

Answer 3

Unemployment

Question 4

Nordhaus’ model predicts that economic growth should be:

Answer 4

Lower before an administration comes to power

Question 5

In the Alesina Rosenthal model, both D and R parties have a different:

Answer 5

Objective function

Question 6

Who has a higher inflation tolerance out of the Democrats and Republicans?

Answer 6

Democratic party

Question 7

Traditionally, who are more likely to be wealthy and more inflation averse of of Dems or Reps?

Answer 7

Republicans

Question 8

Greater political polarization causes:

Answer 8

Greater economic fluctutations

Question 9

The greater the likelihood of one election outcome, the greater the recession generated by:

Answer 9

The other outcome occuring

Question 10

Voters will vote for the party that maximises their utility:

Answer 10

Between elections