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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. According to the rule of 70, how large will China's real GDP per capita be in 20 years?

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Quizplus · Accepted Answer

According to the rule of 70, dividing the growth rate (7%) into 70 gives the number of years for the variable to double. So, China's real GDP per capita will double in approximately 10 years. Therefore, in 20 years, it will double again.

Initial real GDP per capita in China = $4,000
In 10 years, real GDP per capita in China will be $8,000
In 20 years, real GDP per capita in China will be $16,000.

So, the best choice is C.

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