Question
What is the rule of 70? If real GDP per capita grows at a rate of 5 percent per year, how many years will it take to double?
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The rule states that you can find the doubling time by dividing 70 by the growth rate. Show more…
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According to the "rule of 70", how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%?
As discussed in this chapter, real GDP per capita in the United States grew from about $\$ 6,000$ in 1900 to about $\$ 50,010$ in $2014,$ which represents an average annual growth rate of 1.9 percent. If the U.S. economy continues to grow at this rate, how many years will it take for real GDP per capita to double? If government economic policies meant to stimulate economic growth result in the annual growth rate increasing to 2.2 percent, how many years will it take for real GDP per capita to double?
Economic Growth, the Financial System, and Business
Long-Run Economic Growth
As a general rule, you can find the doubling time for exponential growth by dividing 70 by the rate of increase. So, if the population increases by 7 percent per year, the doubling time is 10 years $(70 / 7=10) .$ Suppose Earth's human population continues to grow by 1 percent annually. What is the doubling time? How much time will pass before there are 4 times as many humans on Earth?
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