Given the annual rate of inflation, the "Rule of 70" allows one to:
A. calculate the accompanying rate of unemployment.
B. determine when the value of a real asset will approach zero.
C. determine whether the inflation is demand-pull or cost-push.
D. calculate the number of years required for the price level to double.
Answer: D
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A recent study has revealed that the unemployment rate in Eduland has been increasing over the last few years. What will be the impact of an increase in government spending in Eduland?
What will be an ideal response?
The unemployment rate will never equal zero percent because
A) there are some people who do not want to work. B) there will always be discouraged workers. C) some portion of the labor force will always be between jobs. D) cyclical unemployment will always exist.
The rule of 70 states that
A) the number of years it takes an economy to double in size is the growth rate times 70. B) the number of years it takes an economy to double in size is the growth rate divided by 70. C) it takes an economy 70 years to double its real GDP. D) the number of years it takes an economy to double in size is 70 divided by the growth rate.
The removal of a price ceiling in a market results in:
a. an increase in the market price. b. a shortage in the market. c. over-production of the commodity and a surplus. d. a fall in the market price. e. abnormal profits for producers.