Using the Rule of 72, Calculate the Average Annual Growth

question 37

Multiple Choice

Using the rule of 72, calculate the average annual growth rate of GDP needed for a country to double its size in just four years?

• A)12 percent
• B)4 percent
• C)18 percent
• D)72 percent
• E)28 percent

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Definitions:

Supply of Land

The total availability of land resources that can be used for various purposes, often considered perfectly inelastic.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a change in price.

Relatively Elastic

Describes a situation where the demand for a product is sensitive to changes in price, meaning a small price change can lead to a large change in quantity demanded.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.