« previous next »

Author Question: Which of the following is a limitation of using arithmetic averages to calculate growth rates? A) ... (Read 54 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
on: Jun 30, 2018
Which of the following is a limitation of using arithmetic averages to calculate growth rates?
 
  A) Arithmetic averages do not capture the exponential nature of growth and thus are not apt for long-run prediction.
  B) Arithmetic averages cannot be used in case of negative growth.
  C) Arithmetic averages are difficult to calculate.
  D) The calculation of growth using arithmetic averages requires more data than other methods.

Question 2

If the federal funds rate is set by the Taylor rule and the output gap increases by 5 percentage points, everything else remaining unchanged, the federal funds rate should ________.
 
  A) decrease by 2.5 percentage points B) decrease by 5 percentage points
  C) increase by 5 percentage point D) increase by 2.5 percentage points
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


Amiracle

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Growth pattern of stem cells Growth pattern of stem cells
Anatomy of the Lotka-Volterra equations for predator-prey population growth. Anatomy of the Lotka-Volterra equations for predator-prey population growth.
Growth response by grasses grazed by wildebeest Growth response by grasses grazed by wildebeest
How to calculate simple interest (Part 4; P = I/rt) How to calculate simple interest (Part 4; P = I/rt)
Rapid growth in the use of alternative energy seems impressive Rapid growth in the use of alternative energy seems impressive
Age-Standardized Suicide Rates (per 100 000 Population), Both Sexes, 2016 Age-Standardized Suicide Rates (per 100 000 Population), Both Sexes, 2016
Video: Facilitated Diffusion - Glucose transport

For a complete list of videos, visit our video library