Why Does the Partisan Model of Macroeconomic Policy Predict That

question 31

Multiple Choice

Why does the partisan model of macroeconomic policy predict that changes in partisan control of the government will lead to predicable changes in fiscal policy?

• A) It doesn't; the partisan model of macroeconomic policy is about whether voters are extreme or moderate. Extreme voters want redistribution and moderate voters do not.
• B) Because it assumes that left wing parties represent voters who want more redistribution (and thus, higher levels of fiscal activity) and right-wing parties represent voters who want less redistribution.

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Definitions:

Predictability

The ability to accurately forecast future events or behaviors based on past or current patterns and information.

Illusion of Control

The false belief that one can influence outcomes over which they actually have no control.

Internals

Individuals who believe they can control their lives and outcomes through their own efforts, reflecting an internal locus of control.

Coronary-prone Behavior Patterns

Personality traits and behaviors, such as hostility and urgency, which have been linked to an increased risk of heart disease.