If real GDP grows at a constant rate of 2 percent per year,using the "rule of 72" it will take approximately ___ years for real GDP to double.

Question

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The "rule of 72" is a simple way to estimate the number of years required to double the value of an investment or GDP at a constant annual growth rate. By dividing 72 by the annual growth rate (2% in this case), it will take approximately 36 years for real GDP to double.

If Real GDP Grows at a Constant Rate of 2