Suppose a panel of economists predicts that a nation's real GDP per capita will double in approximately 20 years. According to the rule of 70, what must be the predicted annual growth rate of real GDP per capita?

Question

Quizplus · Accepted Answer

The rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a constant annual growth rate. It is calculated as 70 divided by the annual growth rate. If the GDP per capita is expected to double in 20 years, the growth rate is 70/20 = 3.5%.

Suppose a Panel of Economists Predicts That a Nation's Real