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

question 55

Multiple Choice

There is an election coming up. Conservatives are currently in government, and will be able to raise more money for the next election campaign 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 Conservatives can move first, what will be the outcome of this game? $$\begin{array} { l l l } & \text { Raise prices } & \text { Don't raise prices } \\\hline \text { Conservative strategy } & \text { Outcome A } & \text { Outcome B } \\\text { Raise } M & \text { Cons.: } \$ 40 & \text { Cons.: \$80 } \\& \text { Libs.: } \$ 60 & \text { Libs.: \$20 } \\& \pi = 8 \% & \pi = 0 \% \\& u = 8 \% & u = 6 \% \\\text { Liberal Strategy } & \text { Outcome C } & \text { Outcome } \mathrm { D } \\\text { Don't raise } & \text { Cons.: } \$ 20 & \text { Cons.: } \$ 60 \\M & \text { Libs.: \$80 } & \text { Libs.: \$40 } \\& \pi = 8 \% & \pi = 0 \% \\& u = 9 \% & u = 8 \%\end{array}$$

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

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Definitions:

SIHRM Practices

Strategic International Human Resource Management (SIHRM) practices involve managing people across countries and cultures, aligning HR strategies with global business objectives.

Firm's Strategy

A firm's strategy involves the comprehensive plan developed by an organization to achieve set goals and compete effectively in its industry.

International

Pertains to activities, relations, or considerations that span across national borders, often involving multiple countries or global perspectives.

Perceptual Competencies

Perceptual Competencies involve the skills related to understanding, interpreting, and responding to information gathered through the senses, crucial for effective interaction with the environment and decision-making.