In a standard two period model, r uniformly distributed between 0 and 20 and w=10.

a)What should be such that a dissonant politician will chosse a1=s1 ?

b)If the probability that a politician is congruent is 0,5, what is the voter's belief about incumbent politician being dissonant after observing a1=s1?

c) Now that =0,5, what is the effect on the problem that dissonant politician will do the optimal policy in period 1? And what about voter's belief?