Suppose Per Capita Real GDP Grows by 3

question 105

Multiple Choice

Suppose per capita real GDP grows by 3.5% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double (i.e., increase by 100%) ?

• A)3.5 years
• B)10 years
• C)20 years
• D)35 years

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Definitions:

Sales Capacity

The maximum amount of sales a company can achieve within a given period, based on its resources and market demand.

Future Sales

Projected revenue a company expects to generate from its operations in a future period.

Total Assets

The sum of all current and fixed assets owned by a person or company, reflecting the total resources at their disposal.

Sustainable Growth

The rate at which a company can grow its sales, profits, and dividends without having to increase equity or debt financing.