« previous next »

Author Question: Which of the following is a limitation of using arithmetic averages to calculate growth rates? A) ... (Read 57 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 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

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?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

The epidermal growth factor (EGF) pathway that promotes cell division The epidermal growth factor (EGF) pathway that promotes cell division
Factors that contribute to the growth of family members. Factors that contribute to the growth of family members.
Pediatric growth chart. Pediatric growth chart.
How to calculate credit card interest when the interest is compounded How to calculate credit card interest when the interest is compounded
IPCC models are based on projections of growth IPCC models are based on projections of growth
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
Video: Nucleic acid digestion -small intestine

For a complete list of videos, visit our video library