Answer to Question #228562 in Macroeconomics for TheAnalyst

Question

How long will it take for GDP to double if growth rate is 0.25 per year

Answer 1

Using the rule of 70 or doubling time;

The number of years to double = $\frac{70}{Annual Growth Rate}$

In the case in the question above;

The number of years needed for the GDP to double will be:

$\frac{70}{0.25} = 280 years$