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02 Jul 2023, 05:37
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D
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Difficulty:
25%
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Question Stats:
76% (01:06) correct
24%
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wrong
based on 721
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A certain economic indicator is proportional to the square of the unemployment rate. If the unemployment rate increases by 10 percent, then the indicator will increase by
A. 1%
B. 10%
C. 11%
D. 21%
E. 100%
A. 1%
B. 10%
C. 11%
D. 21%
E. 100%
02 Jul 2023, 06:02
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EI = p*(UR)^2 where p is a constant
Now unemployment rate becomes 1.1UR
So
EI = p*(1.1UR)^2
= p*(1.21UR)
An increase of 21%
Ans D
Posted from my mobile device
Now unemployment rate becomes 1.1UR
So
EI = p*(1.1UR)^2
= p*(1.21UR)
An increase of 21%
Ans D
Posted from my mobile device
04 Jul 2023, 04:26
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MasteringGMAT
A certain economic indicator is proportional to the square of the unemployment rate. If the unemployment rate increases by 10 percent, then the indicator will increase by
A. 1%
B. 10%
C. 11%
D. 21%
E. 100%
A. 1%
B. 10%
C. 11%
D. 21%
E. 100%
If the GMAT tells us that a variable is proportional to another variable, then the two variables are directly proportional to each other. If two variables are directly proportional, then their ratio is constant.
The unemployment rate’s 10% increase corresponds to a factor of 1.1. Let x be the factor by which the indicator will change, and we have:
e/u^2 = ex/(1.1u)^2
e/u^2 = ex/(1.21u^2)
1 = x/1.21
x = 1.21
A factor of 1.21 corresponds to a 21% increase.
Answer: D
