Question #136931
Why is the rule of 70 significant for a nation to calculate and how it can help?
Expert's answer
The rule of 70 is significant for a nation because is helps to calculate the time it will take for GDP to double. First, we need the annual rate of return. Then divide 70 by this rate and get the number of years required for the GDP to increase twice. This rule helps governments to estimate how they need to develop their economy in order to reach their economical goals.
