The rule of 70 indicates that a 6% annual increase in the level of real GDP would lead to the output doubling in approximately _____ years.

Question

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The rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a constant annual growth rate. It is calculated by dividing 70 by the annual growth rate. For a 6% growth rate, 70 / 6 ≈ 11.67, which is approximately 12 years.

The Rule of 70 Indicates That a 6% Annual Increase