If a country's initial real GDP is $60,000 and its yearly growth rate of GDP is 5 percent, 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

To use the Rule of 70, divide 70 by the growth rate of the GDP. Dividing 70 by 5 gives approximately 14, which means it would take around 14 years for the country's GDP to double. Therefore, the answer is choice B.

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