According to the Median Voter Theorem, Policy Changes Only Whenever

question 186

Multiple Choice

According to the median voter theorem, policy changes only whenever the ideal point of:

• A) a voter changes.
• B) the median voter changes.
• C) a random voter changes.
• D) the last voter changes.

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Definitions:

Price Level

The general price level average of all goods and services in the economy currently.

Interest Rates

The cost of borrowing money or the return on saved money, usually expressed as a percentage of the amount borrowed or saved.

Investment

Investment is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Short-Run Aggregate-Supply

A variation in phrasing to describe the responsiveness of the quantity of goods and services produced by an economy to a change in price level in the short term.