If a country's initial real GDP is $60,000 and its annual growth rate is 5%, use the Rule of 70 to determine approximately how many years it would take for this economy to double its GDP.

Question

Quizplus · Accepted Answer

The Rule of 70 states that the number of years it takes for a variable to double is approximately equal to 70 divided by the annual growth rate of the variable. In this case, the annual growth rate is 5%, so 70/5 = 14. Therefore, it would take approximately 14 years for this economy to double its GDP.

If a Country's Initial Real GDP Is $60,000 and Its