According to the Rule of 70, If Real GDP Per

question 50

Multiple Choice

According to the rule of 70, if real GDP per capita is growing at 2% a year, in 100 years it will have increased by:

• A) about 4 times.
• B) about 7 times.
• C) almost 30 times.
• D) almost 60 times.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including a balance sheet and income statement.

Permanent/Temporary

Denotes the duration of financial accounts or business strategies: "permanent" indicates long-term endurance, while "temporary" suggests a short-term or temporary existence.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time, reflecting its consumption, expiration, or decline in value.

Estimated Useful Life

Estimated Useful Life is the expected time period over which a fixed asset is projected to be usable for its intended purpose, affecting depreciation calculations.