Answer to Question #226617 in Macroeconomics for HighPrincess

Question

How many years will it take for GDP to double from R40 billion to R80 billion if the growth rate is 0.25% per year in South Africa?

• 17.5

• 160

• 280

• 10

Answer 1

The number of years it takes for a country's economy to double in size is equal to 70 divided by the growth rate, in percent.

Hence

For South Africa to double from R40 to R80

No of years = $\frac{70}{0.25}=280$