Question

In: Statistics and Probability

Economists often look at retail sales data to gauge the state of the economy. This is...

Economists often look at retail sales data to gauge the state of the economy. This is especially so in a recession year, when consumer spending has decreased. Consider the following table, which shows U.S. monthly nominal retail sales for 2009. Sales are measured in millions of dollars and have been seasonally adjusted. Also included in the table is the corresponding producer price index (PPI) for 2009. Month Sales PPI Month Sales PPI January 339,453 171.3 July 341,568 172.0 February 341,371 171.1 August 349,899 174.3 March 338,205 169.6 September 342,752 173.3 April 337,389 170.8 October 346,691 174.0 May 338,934 170.8 November 353,535 176.4 June 341,992 173.9 December 352,858 177.3 a. How many times were nominal sales below that of the previous month? b-1. Use the PPI to compute sales in real terms. (Round your answers to 2 decimal places.) b-1. Use the PPI to compute sales in real terms. (Round your answers to 2 decimal places.)

month. real sales

How many times were real sales below that of the previous month?

Compute the total percentage increase in nominal as well as real retail sales in 2009. (Round your answers to 2 decimal places.)

Can economists feel optimistic about the economy based on the retail sales data?

Solutions

Expert Solution

orchestra answered 1 year ago
Next > < Previous

Related Solutions

effect the economy has on retail sales
effect the economy has on retail sales
Stine Co. is a retail store operating in a state with a 6% retail sales tax.
Stine Co. is a retail store operating in a state with a 6% retail sales tax. The retailer may keep 2% of the sales tax collected. Stine Co. records the sales tax in the Sales account. The amountrecorded in the Sales account during May was $148,400. 99. The amount of sales taxes (to the nearest dollar) for May isa. $8,726. b. $8,400. c. $8,904. d. $9,438.The amount of sales taxes payable (to the nearest dollar) to the state for the...
Vaughn Co. is a retail store operating in a state with a 7% retail sales tax....
Vaughn Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Vaughn Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $747930. The amount of sales taxes payable (to the nearest dollar) to the state for the month of May is $37307. $47951. $51310. $61874.
Managerial economists, as well as business economists, often are hired as consultants to firms regarding the...
Managerial economists, as well as business economists, often are hired as consultants to firms regarding the appropriate pricing policy and strategy to utilize so as to maximize economic profits. Sometimes firms utilize what they believe is an optimal pricing policy and strategy, only to discover that they are in fact not maximizing their economic profits, and hence not really adding value to the business. For each of the following scenarios, provide advice on the appropriate pricing policy and strategy, including...
Managerial economists, as well as business economists, often are hired as consultants to firms regarding the...
Managerial economists, as well as business economists, often are hired as consultants to firms regarding the appropriate pricing policy and strategy to utilize so as to maximize economic profits. Sometimes firms utilize what they believe is an optimal pricing policy and strategy, only to discover that they are in fact not maximizing their economic profits, and hence not really adding value to the business. For each of the following scenarios, provide advice on the appropriate pricing policy and strategy, including...
Economists are often blamed as cruel and calculating. This section makes it feel as though economists...
Economists are often blamed as cruel and calculating. This section makes it feel as though economists consider consumers to be human calculators in order to maximize their welfare. How would you explain the following paradox? Economic theory assumes that consumers always want more, and they are constrained by their resources. (If they had $1 more they would find a way to spend it and increase their happiness). It that's the case, how would you explain charity? Aren't consumer just simply...
The following quesiton pertains to a strain gauge on a cantilever beam often used in labs....
The following quesiton pertains to a strain gauge on a cantilever beam often used in labs. Are there any advantages in placing a strain gauge at one point on the beam as opposed to another? In general, what should the criteria be for choosing locations for strain gauges? Consider where on the beam the strain will be of highest amplitude or of highest frequency. What do you want (i.e. what criteria is most important)? In order to get the most...
Employers often use standardized measures to gauge how likely it is that a new employee with...
Employers often use standardized measures to gauge how likely it is that a new employee with little to no experience will succeed in their company. One such factor is intelligence, measured using the Intelligence Quotient (IQ). To show that this factor is related to job success, an organizational psychologist measures the IQ score and job performance (in units sold per day) in a sample of 10 new employees. IQ Job Performance 100 16 115 35 108 32 98 19 120...
Full paragraph (a) Why do economists look at implicit costs? (b) Look at two businesses (one...
Full paragraph (a) Why do economists look at implicit costs? (b) Look at two businesses (one big and one small) and for each identify what might be their implicit costs. Be specific! 1.What is the marginal product of labor (MP or MPP)? Why is the curve shaped the way it is? 2.Explain and describe each of the four production relationships.
The retail sales tax has become a popular way to finance state, county, and city governments...
The retail sales tax has become a popular way to finance state, county, and city governments as well as special districts. What are the pros and cons of reliance on the retail sales tax as a primary source of revenue, especially for local governments?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT