If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Question

Quizplus · Accepted Answer

The rule of 70 states that the number of years it takes for a variable to double is approximately 70 divided by the variable's growth rate. Using this formula, we get 70/5= 14, which means it will take approximately 14 years for a nation's real GDP to double at a growth rate of 5 percent per year. Therefore, the best choice is C) 14 years.

If a Nation's Real GDP Is Growing by 5 Percent