Using the Rule of 72, how long will it take something growing at 2% per year to double?

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is

A) -0.67. B) 0.67. C) 1.5. D) 2.

If a demand shock causes an economy to operate at a point above potential GDP, then

a. the aggregate supply curve will shift to return the economy to the original point of equilibrium b. the economy will correct itself through rising wages and prices c. this short-run equilibrium point will become the new long-run equilibrium GDP d. the economy will correct itself through falling wage rates and prices e. the shock is said to be a negative demand shock