Given the Annual Rate of Inflation, the "Rule of 70

question 41

Multiple Choice

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.

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Definitions:

Direct Approach

A straightforward method of dealing with a situation or problem, often characterized by clear, explicit communication or action.

Neutral Buffer

A statement or segment of communication intended to ease the transition into or soften the impact of the main message, often used in sensitive or potentially contentious contexts.

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or explanations.

Neutral Buffer

An unbiased or impartial area, system, or element that reduces the impact of conflicts or differences.