ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
11 1/2 years
|
|
|
10 years.
|
|
|
13 1/2 years.
|
|
|
9 years.
|
Detailed explanation-1: -If an economy grows at 7% per year, it will take 70 / 7 = 10 years for the size of that economy to double, and so on.
Detailed explanation-2: -If real GDP grows at 7 percent per year, then real GDP will double in approximately 10 years. We can derive this fact by using the rule of 70, which tells us that the approximate number of years required to double real GDP is equal to the number 70 divided by real GDP’s annual percentage rate of growth.
Detailed explanation-3: -According to the Rule of 70, a. if a country is growing at 7 percent per year, its output will double in approximately 10 years.
Detailed explanation-4: -Using the Rule of 70 If an economy grows at 2 percent per year, it will take 70/2=35 years for the size of that economy to double. If an economy grows at 7 percent per year, it will take 70/7=10 years for the size of that economy to double, and so on.
Detailed explanation-5: -The country will require 10 percent of growth to double its economy in 7 years. The country will require 2 percent of growth to double its economy in 35 years.