No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Macroeconomic Performance (6 of 10)

Question 6:
Assume that an economy's real gross domestic product increases at a rate of 7% per year. Approximately, how many years will it take for the economy to double in size?

A.  1 year
B.  7 years
C.  10 years
D.  14 years
E.  70 years

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Correct Answer: C, 10 years. Rule of 70: 70/7% = 10 years.