The country of Needia has recently suffered a decline in its growth rate from 3 to 2 percent per year. How many more years will it now take for output to double in Needia?

Question

Quizplus · Accepted Answer

The rule of 70 states that it takes approximately 70/growth rate years for output to double. With a growth rate of 3%, it would take 70/3 = 23 years for output to double. With a growth rate of 2%, it will now take 70/2 = 35 years for output to double. Therefore, it will take 35 - 23 = 12 more years for output to double in Needia.

The Country of Needia Has Recently Suffered a Decline in Its