Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%. How long will it take China's real GDP per capita to double?

Question

Quizplus · Accepted Answer

To find the number of years it will take for China's real GDP per capita to double, we can use the rule of 72, which states that the doubling time is approximately equal to 72 divided by the growth rate. 
For China, the growth rate is 7%, so 72/7 = approximately 10. 
Therefore, it will take approximately 10 years for China's real GDP per capita to double.

Suppose That Real GDP Per Capita of the United States