If GDP is expected to increase at a steady rate of 3% per year,how many years would it take for living standards to double?
A)10
B)20
C)24
D)30

Question

​If GDP is expected to increase at a steady rate of 3% per year,how many years would it take for living standards to double?
A)​10
B)20
C)24
D)​30

Quizplus · Accepted Answer

To calculate the number of years it takes for living standards to double, we can use the rule of 70. The rule of 70 states that the number of years it takes for a variable to double is approximately 70 divided by the annual growth rate of that variable. In this case, the annual growth rate is 3%, so we can calculate the number of years as 70/3 = 23.33, which we can round up to 24 years. Therefore, the answer is C) 24.

​If GDP Is Expected to Increase at a Steady Rate

If GDP Is Expected to Increase at a Steady Rate