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:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured for diagnostic purposes.

Stress

A physical or psychological response to internal or external pressures, often resulting in physical, mental, or emotional strain or tension.

Flexibility

The quality of bending easily without breaking, referring to the range of movement in a joint or series of joints.

Intervertebral Disks

The cartilage pads that sit between the vertebrae in the spine, acting as shock absorbers and allowing for flexibility.