All else constant, if real GDP doubles in 12 years, its average annual growth rate is

Question

Quizplus · Accepted Answer

The rule of 72 is a quick way to estimate the number of years it takes for a variable to double. The rule states that the number of years it takes for a variable to double is approximately equal to 72 divided by the annual growth rate. In this case, real GDP doubles in 12 years, so the annual growth rate is approximately 72 / 12 = 6%.

All Else Constant, If Real GDP Doubles in 12 Years