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:

Underapplied Overhead

A situation where the allocated overhead costs are less than the actual overhead costs incurred, leading to a cost discrepancy.

Overapplied Overhead

Overapplied overhead occurs when the allocated overhead cost in production exceeds the actual overhead expenses incurred, leading to adjustments in accounting.

Closing Account

The process of preparing accounts for the end of an accounting period, involving transferring temporary account balances to permanent ones.

Long Term Strategic

Pertaining to long-range planning and actions aimed at achieving major goals or objectives.