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.

Question

Quizplus · Accepted Answer

The "rule of 70" is a way to estimate the number of years it will take for a quantity to double, given a constant annual growth rate. It is calculated by dividing 70 by the annual growth rate (in percentage terms).

Given the Annual Rate of Inflation, the "Rule of 70