Which of the following is true of the rule of 72?
a. The rule of 72 is used to approximate annual real GDP.
b. The rule of 72 determines the time required for any value to double if it grows at a constant annual rate.
c. The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size.
d. The rule of 72 refers to the fact that real GDP doubles every 6 years.
e. The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP.
b
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Which of these is a coincident economic indicator?
a. The demand for plant and machinery b. Personal income c. Real estate growth d. The interest rate e. The unemployment rate
An increase in input productivity will ________.
A. reduce aggregate demand B. reduce the equilibrium price level, assuming downward flexible prices. C. shift the aggregate supply curve leftward D. reduce the equilibrium real output