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Scenario: Growth Rates
Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year. Real GDP per capita of China is $4,000, and its annual growth rate is 7%.
-(Scenario: Growth Rates) Look at the scenario Growth Rates. How long will it take China's real GDP per capita to double?

Question

Quizplus · Accepted Answer

To find out how long it will take China's real GDP per capita to double, we can use the rule of 70 formula, which is:
number of years to double = 70 / annual growth rate
So for China:
number of years to double = 70 / 7 = 10
Therefore, the answer is B.

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