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Scenario: Growth Rates in Two Countries
India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000.
-(Scenario: Growth Rates in Two Countries) Look at the scenario Growth Rates in Two Countries. How long will it take India to double its real GDP per capita?

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Quizplus · Accepted Answer

The Rule of 70 is used to estimate the doubling time of an investment or GDP. It states that you divide 70 by the annual growth rate. For India, with a growth rate of 9%, it will take approximately 70/9 = 7.8 years to double its real GDP per capita.

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