A nation’s average annual real GDP growth rate is 5%. Based on the "rule of 72,"...

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A nation’s average annual real GDP growth rate is 5%. Based on the "rule of 72,"...

A nation’s average annual real GDP growth rate is 5%. Based on the "rule of 72," the approximate number of years that it would take for this nation’s real GDP to double is

14.4 years.
12.5 years.
16.2 years.
10 years.

business economics

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Answer 1

Answer #1

Answer

Option 1

Required number of years to double the real GDP =72/ nation’s average annual real GDP growth rate

=72/5

=14.4 years

It will take 14.4 years to double.

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Answer 2

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A nation’s average annual real GDP growth rate is 5%. Based on the "rule of 72,"...

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