If a country's GDP in 1950 was $25,000 and it had a continual rate of economic growth of 2%,its GDP would reach $50,000 until the year 2000.

Question

Quizplus · Accepted Answer

Using the rule of 70, which estimates the number of years required to double an investment at a given annual rate of return (70 divided by the growth rate), we find that it would take 35 years (70/2) for the GDP to double from $25,000 to $50,000. Therefore, if the GDP was $25,000 in 1950, it would reach $50,000 by 1985, not 2000.

If a Country's GDP in 1950 Was $25,000 and It