If a Country's Initial Real GDP Is $60,000 and Its

question 83

Multiple Choice

If a country's initial real GDP is $60,000 and its yearly growth rate of GDP is 5 percent, use the Rule of 70 to determine approximately how many years it would take for this economy to double its GDP.

• A) 20 years
• B) 14 years
• C) 70 years
• D) 12 years

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate can vary depending on income level, type of income, or type of goods.

Accrual-based Net Income

Net income calculated using the accrual method, recognizing revenues when earned and expenses when incurred, offering a more accurate picture of a company's financial position.

Domestic Corporations

Companies that are incorporated and operate within the legal boundaries of a specific country.

Accrual-based Income

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.