Ask Question, Ask an Expert


Ask Microeconomics Expert

Consider a simple model of presidential elections. It is well established by political scientists that economic factors affect the popularity of an incumbent. An incumbent's chance of reelection may thus depend upon variables such as the unemployment rate, U, and the inflation rate, π, in the year of the election. A simple function that captures this relationship relates the ratio of the votes going to an incumbent relative to those going to the challenger, V, as a function of the unemployment rate and the inflation rate: V = f(U, π).Reflecting our assumption that higher unemployment or higher inflation lowers theproportion of votes going to the incumbent. Suppose we assumed that unemployment is a function of both monetary and fiscal policies as U = f(M,F) and inflation is also a function of both monetary and fiscal policies as π=g(M,F).

A) Find the partial derivate of both unemployment and inflation with respective to monetary and fiscal policies and interpret the result?

B) Find the derivative of the vote ratio with respect to both monetary and fiscal policies and interpret the result?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938666

Have any Question? 

Related Questions in Microeconomics

Problem 1 -an economic forecasting organization has

PROBLEM 1 - An economic forecasting organization has developed a model they feel will help them better predict the market conditions than just overall sentiment.  Their proprietary model yields either Positive or Negativ ...

Businesses should examine various internal methods of

Businesses should examine various internal methods of financing or nonbank sources of credit as opposed to obtaining a bank loan. Read "Entrepreneurship In Action - Where Do we Turn Now?" on page 504. Answer these questi ...

Assignmentyou are hired at a manufacturing plant in texas

Assignment You are hired at a manufacturing plant in Texas as an assistant plant manager. You have over ten years of experience in manufacturing and have a Bachelors in Business and a Master in Business Administration. T ...

Question 1complete these 2 questions questions 1 and 2 and

Question 1: Complete these 2 questions (questions 1 and 2) and then submit answers to questions about problem set one on Blackboard. 1) Go to the Problem set button. 2) Then open the problem set submission form folder. 3 ...

Microeconomics assignmentdirections unless otherwise stated

Microeconomics ASSIGNMENT Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) ...

Httpswwwyoutubecomwatchvhblevnwyg8what was the promise of What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

Assignment1perform an industry analysis for each of ibms

Assignment 1. Perform an industry analysis for each of IBM's top market segments: services, software, and hardware. Are these attractive industries? Why or why not? 2. Looking at IBM's RCCs, can IBM gain and sustain a co ...

Read the case target from expect more to pay less on pages

Read the case "Target: From 'Expect More' to 'Pay Less'" on pages 103 to 105 of the textbook and prepare answers to the questions below. Question 1 Identify four actors in the microenvironment that haveaffected Target's ...

Digital media power point presentationdigital media has

Digital Media Power point presentation Digital media has changed the ways ideas, information, and arguments in society are communicated both locally and globally. Individuals and organizations frequently use digital medi ...

Economics assignmentactivity 1 - the budget constraintgraph

Economics Assignment Activity 1 - The Budget Constraint Graph an example of a budget constraint (or the consumption choice opportunity frontier) for the purchase of two different goods or services. State the budget in th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate