According to the "Rule of 70", how many years will it take for real GDP per capita to double when the growth rate of re...
According to the "Rule of 70", how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%?
A. less than 1 year
B. 35 years
C. 5 years
D. 14 years
Homework Answers
Option D. 14 years
Explanation: The number of years required = 70/rate of growth = 70/5 - 14 years.
SOLUTION :
As per rule of 70.
Years required to double the amount = 70 / growth rate in %
Hence,
Years required to double the GDP at 5% growth rate
= 70 / 5
= 14 years. (ANSWER)
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