Suppose that real GDP per capita of Canada is $32 000 and its growth rate is 2% per year and that real GDP per capita of China is $4 000,and its annual growth rate is 7%.How long will it take China's real GDP per capita to double?

Question

Quizplus · Accepted Answer

To double its real GDP per capita, China needs its GDP per capita to increase by 100%.
Using the formula for the Rule of 70, which states that the number of years it takes for a variable to double is approximately 70 divided by the annual growth rate of the variable, we can calculate: 
For Canada: 
70/2 = 35 years
For China: 
70/7 = 10 years.

Suppose That Real GDP Per Capita of Canada Is $32