If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Question

Quizplus · Accepted Answer

To find the average annual rate of inflation that results in a doubling of the price level over 23 years, we use the Rule of 70, which states that dividing 70 by the number of years it takes for a quantity to double gives the approximate annual growth rate. 70/23 is approximately 3 percent.

If the Price Level Doubled in a 23-Year Period, We