There Is an Election Coming Up A)Outcome a
B)Outcome B
C)Outcome C
D)Outcome D

question 23

Multiple Choice

There is an election coming up.Conservatives are currently in government,and will be able to raise more money for the next federal election if they keep inflation and unemployment low.Conservatives can persuade firms whether or not to raise prices;Liberals can persuade the Bank whether or not to increase the money supply.The amount of money raised by each party and the resulting inflation and unemployment rates are given below.If the Liberals can move first,what will be the outcome of this game?
$$\begin{array} { l l l } & \text { Raise prices } & \text { Don't raise prices } \\\hline \text { Conservative strategy } & \text { Outcome } \mathrm { A } & \text { Outcome B } \\\text { Raise } M & \text { Cons.: } \$ 40 & \text { Cons.: \$80 } \\& \text { Libs.: } \$ 60 & \text { Libs.: } \$ 20 \\& \pi = 8 \% & \pi = 0 \% \\& u = 8 \% & u = 6 \% \\\text { Liberal Strategy } & \text { Outcome } \mathrm { C } & \text { Outcome } \mathrm { D } \\\text { Don't raise } & \text { Cons.: } \$ 20 & \text { Cons.: } \$ 60 \\M & \text { Libs.: } \$ 80 & \text { Libs.: } \$ 40 \\& \pi = 8 \% & \pi = 0 \% \\u = 9 \% & u = 8 \% \\\hline\end{array}$$

• A)Outcome A
• B)Outcome B
• C)Outcome C
• D)Outcome D

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Definitions:

Elevation

The height of a point or object above a reference level, typically above sea level.

Stretched

In geological contexts, stretched refers to the extension or elongation of the Earth's crust as a result of tectonic activities, leading to the formation of features such as rift valleys.

Erode Material

Refers to substances or objects that have experienced erosion, the process where natural forces like water and wind remove soil, rock, or dissolved material from one location and then transport it to another.

Crust

The thin, solid, outermost layer of the Earth, lying above the mantle.