A 7 percent growth rate will bring about a doubling of real GDP in about how many years?
A)1
B)7
C)10
D)70

Question

Quizplus · Accepted Answer

The rule of 70 states that to find the number of years required to double real GDP at a given annual growth rate, we divide 70 by the growth rate. In this case, 70 divided by 7 equals 10, which means it would take approximately 10 years for real GDP to double at a 7 percent growth rate. Therefore, the best choice is C.

A 7 Percent Growth Rate Will Bring About a Doubling