Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 Percent a year in China. It will take real GDP per person approximately _{--------------------}years to double in The United States and approximately_{--------------------} years to double in China.

Question

Quizplus · Accepted Answer

The rule of 70 states that it takes approximately 70/growth rate to double a quantity. In the United States, real GDP per person grows 2 percent a year, so it will take approximately 70/2 = 35 years to double. In China, real GDP per person grows 4 percent a year, so it will take approximately 70/4 = 17.5 years to double.

Suppose That in the Future, Real GDP Per Person Grows