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4. In the city of Panem there are two political parties: the White Rose party and the Red Rose party. Historically, if the the
4. In the city of Panem there are two political parties: the White Rose party and the Red Rose party. Historically, if the the White Rose party wins the election, they have an 80% chance of winning the next election as well. If the Red Rose party wins the election, they have a 60% of re-election. (a) If this year the Red Rose party won the election, then which party will be in power in 3 elections? (b) What were the percentages of popularity after 3 elections for each party? (c) Find the steady state vector for Panem, and give an interpretation of the long term political situation of Panem.
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
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