Q 22

Use the rule of 72 to determine how long it takes for real GDP to double if real GDP grows at 3% per year.
A) 12 years
B) 24 years
C) 36 years
D) 72 years

Q 23

Suppose that GDP of a small tropical island grows at 4% per year. This year, output is equal to 100,000 units of output. Using the rule of 72, how long will it take before GDP is equal to 400,000 units of output?
A) 18 years
B) 36 years
C) 45 years
D) 72 years

Q 24

All else constant, if a nation's potential output doubles in 36 years, its average annual growth rate is
A) approximately 1% .
B) approximately 2%.
C) approximately 3%.
D) approximately 4%.