According to the Rule of 70, If a Country Grows

question 46

Multiple Choice

According to the rule of 70, if a country grows at an average rate of 2 percent per year, what would happen after 35 years?

• A) The country's real GDP per capita would double.
• B) The country's nominal GDP would double.
• C) The country's real GDP would double.
• D) The country's nominal GDP per capita would double.

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Definitions:

Economic Systems

The organized way a society allocates its resources and distributes goods and services among its population.

Recession

A short-term economic slump characterized by a reduction in business and industrial activities, usually signified by a GDP decrease over two back-to-back quarters.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's growing over time.

Business Quarters

Divisions of a fiscal year into four three-month periods, used by companies to report financial results and forecast future performance.