Suppose that a panel of economists predicts that a nation's real GDP per capita will have an average annual growth rate of 2%. According to the rule of 70, how many years will it take for this nation's real GDP per capita to double?

Question

Quizplus · Accepted Answer

The rule of 70 states that it takes approximately 70 divided by the annual growth rate to double a quantity. In this case, the annual growth rate is 2%, so it will take approximately 70 / 2 = 35 years for the nation's real GDP per capita to double.

Suppose That a Panel of Economists Predicts That a Nation's