If an economy can increase its steady annual growth rate from 2 percent to 3 percent,this reduces the time it takes for the economy to double in size by __________ years.

Question

Quizplus · Accepted Answer

Using the Rule of 70, the doubling time is calculated as 70 divided by the growth rate. At 2%, it takes 35 years (70/2) to double, and at 3%, it takes about 23.33 years (70/3). The difference is approximately 12 years.

If an Economy Can Increase Its Steady Annual Growth Rate