Given the annual rate of inflation, the "rule of 70" allows one to:
A. determine whether the inflation is demand-pull or cost-push.
B. calculate the accompanying rate of unemployment.
C. determine when the value of a real asset will approach zero.
D. calculate the number of years required for the price level to double.
D. calculate the number of years required for the price level to double.
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A community college charges lower tuition fees to town residents than to nonresidents. This pricing strategy increases the profits of the community college. Using this information, we can conclude that nonresidents must have a _____ demand for attending the community college than residents.
a. less price-elastic b. greater c. more price-elastic d. lower
If a 1 percent increase in price causes a 0.5 percent increase in quantity supplied, then supply is
A. unit elastic. B. inelastic. C. elastic. D. infinite.
In the figure above, a movement from point A to point C can be the result of
A) an increase in the government budget deficit. B) a decrease in expected profit. C) a rise in the real interest rate. D) an increase in expected profit. E) a fall in the real interest rate.
Conglomerate mergers involve more than two firms
a. True b. False