If the Growth Rate of Real GDP Rises from 3

question 250

Multiple Choice

If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from

• A)23.3 years to 17.5 years.
• B)28.0 years to 21.0 years.
• C)11.2 years to 10.8 years.
• D)23.3 years to 20.6 years.
• E)30.4 years to 23.5 years.

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements.

Sales In Units

The total number of individual items or units sold by a company within a specific period.

High-Low Method

A technique used in financial analysis to estimate fixed and variable components of a cost by analyzing the highest and lowest levels of activity and their corresponding costs.

Cost Formula

An equation used to calculate the total cost of a product or service, typically incorporating both fixed and variable costs.