If real GDP per capita grows at a constant rate of 4 percent per year,using the "rule of 72" it will take approximately ___ years for real GDP to double.

Question

Quizplus · Accepted Answer

The rule of 72 states that dividing 72 by the growth rate (as a percentage) gives the approximate number of years it takes for a variable to double. So, 72 divided by 4 equals 18 years for real GDP per capita to double. Therefore, the best choice is C.

If Real GDP Per Capita Grows at a Constant Rate