Using the Rule of 70, a Sustained 3 Percent Per

question 25

Multiple Choice

Using the rule of 70, a sustained 3 percent per year real GDP growth rate will

• A)double the current level of real GDP in about 23 years.
• B)double the current level of real GDP in about 210 years.
• C)double the current level of real GDP in about 40 years.
• D)last for 70 years.
• E)double the current level of real GDP in about 70 years.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company. This includes both the materials and labor costs.

General/Administrative Expenses

Overhead or operational costs not directly tied to producing goods or services, such as salaries of administrative staff.

Full-Capacity Level

The maximum level of output that a company can sustain over a period of time without incurring additional costs.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.