If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from

Question

Quizplus · Accepted Answer

This can be calculated using the Rule of 70, which states that the number of years required to double an investment or in this case, GDP, can be estimated by dividing 70 by the annual growth rate. For a growth rate of 3%, it takes 70 / 3 = 23.3 years, and for a growth rate of 4%, it takes 70 / 4 = 17.5 years.

If the Growth Rate of Real GDP Rises from 3