The Rule of 72Small differences in annual growth rates cumulate into large differences in GDP. Shown here are thenumber of years it would take to double GDP at various growth rates.Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equalsthe number of years it takes to double.Growth Rate Doubling Time(percent)(years)0.0Never0.5144.01.072.048.036.028.820.620.618.016.014.413.112.011.110.39.69.01.52.02.53.03.54.04.55.05.56.06.57.07.58.0China's output grew at an amazing rate of 8 percent per year from 2010 to 2014.a. At that rate how long would it take for China's GDP to double?b. With its population increasing at 0.6 percent per year, how longwill it take for per capita GDP to double?yearsyears

Answered: Image /qna-images/answer/d91d2318-c9fa-4959-9ed0-dd19bd3e3647.jpg

Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (percent) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 (years) Never 144.0 72.0 48.0 36.0 28.8 20.6 20.6 18.0 16.0 14.4 13.1 12.0 11.1 10.3 9.6 9.0 China's output grew at an amazing rate of 8 percent per year from 2010 to 2014. a. At that rate how long would it take for China's GDP to double? b. With its population increasing at 0.6 percent per year, how long will it take for per capita GDP to double? years years

Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (percent) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 (years) Never 144.0 72.0 48.0 36.0 28.8 20.6 20.6 18.0 16.0 14.4 13.1 12.0 11.1 10.3 9.6 9.0 China's output grew at an amazing rate of 8 percent per year from 2010 to 2014. a. At that rate how long would it take for China's GDP to double? b. With its population increasing at 0.6 percent per year, how long will it take for per capita GDP to double? years years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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