Suppose per capita real GDP grows by 10% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double?
A) 70 years
B) 7 years
C) 10 years
D) none of the above

Question

Quizplus · Accepted Answer

According to the Rule of 70, to determine the number of years it takes for a variable to double, divide 70 by the annual growth rate. In this case, 70 divided by 10 equals 7. Therefore, it would take approximately 7 years for the level of per capita real GDP to double.

Suppose Per Capita Real GDP Grows by 10% Per Year