Refer to the Graph Shown

question 78

Multiple Choice

Refer to the graph shown. If the price level is P₁, then:

• A)input prices will fall and output will rise in the long run.
• B)both input prices and output will fall in the long run.
• C)input prices will rise and output will fall in the long run.
• D)both input prices and output will rise in the long run.

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Definitions:

Wilcoxon Rank

A non-parametric statistical test that compares two paired groups, based on ranking the differences between pairs and used when the data does not necessarily conform to a normal distribution.

Null Hypothesis

A hypothesis that assumes no significant difference or effect, serving as a default position until evidence indicates otherwise.

Pearsons Correlation

A measure of the linear correlation between two variables X and Y, giving a value between +1 and -1 inclusive, where 1 is total positive linear correlation, 0 is no linear correlation, and −1 is total negative linear correlation.

Ranks Of Data

The order of data points based on their value, usually from smallest to largest, used in non-parametric statistical analyses.