The rule of 70 indicates that a 5% annual increase in the potential level of real...

The rule of 70 indicates that a 5% annual increase in the potential level of real GDP would lead to the potential output doubling in _______ years

	a.	6
	b.	12
	c.	14
	d.	20

Expert Solution

Solution:-

GDP would lead to the potential output doubling = 70 / percent increase

= 70 / 5

= 14

The potential level of real GDP would lead to the potential output doubling in 14 years

Rahul Sunny answered 3 years ago

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