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Tpy6a [65]
3 years ago
5

Use the Rule of 70 to answer the questions on economic growth. Round answers to two places after the decimal. If annual real GDP

per capita growth in South Africa averages 1.8 % , how long will it take the country to double its real GDP per capita
Business
1 answer:
lyudmila [28]3 years ago
4 0

Answer:

39 years

Explanation:

Under the rule of 70, the economy doubles its real GDP per capita income

In this the computation is done by dividing the 70 by the annual growth rate

So, the formula is shown below:

Time period = Rule of 70 ÷ growth rate

where,

Growth rate is 1.8%

So, the time period at which the GDP doubles is

= 70 ÷ 1.8

= 39 years

By dividing the rule of 70 by the growth rate we can find the number of years at which the GDP doubles

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