Suppose That GDP of a Small Tropical Island Grows at 4

question 103

Multiple Choice

Suppose that GDP of a small tropical island grows at 4% per year. This year, output is equal to 100,000 units of output. Using the rule of 72, how long will it take before GDP is equal to 400,000 units of output?

• A) 18 years
• B) 36 years
• C) 45 years
• D) 72 years

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Definitions:

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