The Rule of 70 states that the number of years it takes for the level of any var
ID: 1163619 • Letter: T
Question
The Rule of 70 states that the number of years it takes for the level of any variable to? ______ is approximately? ______.
??
A.?double; 70 divided by the annual percentage growth rate of the variable
B.increase by a factor of? 70; 1/70 multiplied by the annual percentage growth rate of the variable
C.?double; 70 multiplied by the annual percentage growth rate of the variable
D.increase by a factor of? 70; 70 divided by the annual percentage growth rate of the variable
If real GDP per person doubles in 20? years, then the annual growth rate of real GDP per person is? ______ percent a year.
??
A.14.0
B.28.5
C.3.5
D.14.3
Explanation / Answer
Answer : 1) Option A is correct.
Because according to the 70 rule if any variable to be doubled takes number of years then approximately 70 will be divided by the annual growth rate of that variable in %. Or, you can say for 70 rule,
Number of years of variable to be doubled = 70 / annual growth rate in %
2) Option C is correct.
Because here real GDP is variable which takes 20 years to be doubled. According to the 70 rule formula,
Number of years of variable to be doubled = 70 / annual growth rate in %
=> 20 = 70 / annual growth rate in %
=> annual growth rate in % × 20 = 70
=> annual growth rate in % = 70/20 = 3.5
Therefore, per person annual growth rate of real GDP is 3.5 % per year.
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