Assume That the Left-Wing Party Always Had a Policy of High

question 53

Multiple Choice

Assume that the left-wing party always had a policy of high money growth whereas the right-wing party followed a policy of low money growth,and the economy had a standard Phillips curve.Then,if the two parties took regular terms in office:

• A) there would be no political business cycle,but inflation would be higher under the left-wing party.
• B) there would be no political business cycle,but inflation would be higher under the right-wing party.
• C) unemployment would be lower under the left-wing party but inflation would be higher.
• D) both unemployment and inflation would be higher under the left-wing party.

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Definitions:

Matched Pair

A technique in experimental design where pairs of subjects are closely matched based on certain key characteristics, and one subject from each pair is assigned to each experiment group.

Nonzero Differences

Variations or disparities in data that are distinct from zero, indicating a measurable change or effect.

Parametric T-Test

A statistical test used to compare the means of two samples, assuming that the underlying populations have a normal distribution and known variance.

Nonparametric Counterpart

A type of statistical method that does not assume a specific distribution for the data, often used when the data doesn't meet the assumptions of parametric tests.