If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about

Question

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Using the Rule of 70, which states that the number of years required to double a figure at a constant annual growth rate is approximately 70 divided by the growth rate. At 2 percent growth, it takes 35 years (70/2) to double. At 4 percent growth, it takes 17.5 years (70/4). The difference is 17.5 years, indicating that the time to double the standard of living declines by about 17.5 years when productivity growth increases from 2 percent to 4 percent per year.

If the Secular Trend of Labor Productivity Rises from 2