Question 12 pts Based on the rule of 72, it would require 18 years for an econom

Question

Question 12 pts

Based on the rule of 72, it would require 18 years for an economy to double its real output if the annual growth rate was 4%.

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Question 22 pts

Business inventories tend to fall after an unexpected increase in aggregate demand.

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Question 32 pts

A product in the first stage of production is defined as a(n):

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Question 42 pts

According to the theory of adaptive expectations, if the inflation rate has been 4.2 percent for the last ten years, people will expect next year’s inflation rate to be:

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Question 52 pts

As of 2008, which of the following countries had a female literacy rate of less than 50%?

Explanation / Answer

1. True if we divide 72 by 4 we get 18. so, that is true. the rule is time taken = 72/g

2. True.

3. transitory product. Since it will be used in the subsquesnt stages of production.

4 4.2 percent only. He has no reason to change his expectation for the prevailing rate of infaltion.

5 Ethiopia had a female literacy rate of 28.92% in 2007.

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