Real GDP per person has been growing at 3.5 percent per year in Canukistan. At this rate, how many years will it take real GDP per person to double?

Question

Quizplus · Accepted Answer

The rule of 70 is a shortcut for calculating how long it will take for a quantity to double. The rule states that the number of years it will take for a quantity to double is approximately equal to 70 divided by the annual growth rate. In this case, the annual growth rate is 3.5 percent, so the number of years it will take for real GDP per person to double is approximately equal to 70 / 3.5 = 20 years.

Real GDP Per Person Has Been Growing at 3