Recall the Application About the Behavior of Prices in Retail

question 12

Multiple Choice

Recall the Application about the behavior of prices in retail catalogs to answer the following question(s) . Economist Anil Kashyap of the University of Chicago examined the prices of 12 selected goods from L.L. Bean, REI, and The Orvis Company, Inc. Kashyap tracked the prices from the companies' catalogs which were reissued every six months.
-According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which

• A) price changes are significant because the aggregate supply curve is vertical.
• B) prices never change because the aggregate demand curve is vertical.
• C) prices change frequently because of changes in aggregate supply.
• D) prices don't change very much, implying that the aggregate supply curve is relatively flat.

Perform hypothesis testing on population proportions.

Interpret confidence intervals and their widths in different scenarios.

Understand the concept and application of hypothesis testing with P-values.

Estimate population proportions with plus four confidence interval method.

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Definitions:

Nominal Income

The total amount of money earned by an individual or entity before adjustments for inflation or deflation.

Leading Economic Indicators

Variables that predict, or lead to, a recession or recovery; examples include consumer confidence, stock market prices, business investment, and big-ticket purchases, such as automobiles and homes.

Business Cycle

The natural fluctuation of the economy between periods of expansion (growth) and contraction (recession).

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, often measured by a price index.