Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). 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.
Answer: D
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When the Federal Open Market Committee (FOMC) votes on policy, they do so
A) in the following order: the chair, the vice chair, the remaining FOMC members in alphabetical order. B) in order based on seniority at the Fed. C) in the following order: the chair, the vice chair, the remaining FOMC members by seniority at the Fed. D) in alphabetical order.
Comparing the core inflation rate to the Consumer Price Index, the core inflation rate
A) controls for the biases of the CPI. B) uses current period quantities, not base period quantities. C) measures all goods produced, not just consumer goods. D) includes volatile elements not in the CPI. E) excludes the volatile elements of the CPI.