Help me please Consider an imaginary economy that has been growing at a rate of

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Help me please

Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the President that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate. According to the rule of 70, determine the number of years it will take the economy to double at each growth rate.

Explanation / Answer

According to Rule 70, the number of years it takes for an economy (or any other quantity, for that matter) to double in size is equal to 70 divided by the growth rate, in percent. Therefore if the growth rate in percent is 6 then the years required to double will be 12. If it is 7, then the year rquired to double will be 10 and in case of 8 it will be 9.

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