Suppose the real GDP growth rate in Germany consistently averages 3.5% per year. Approximately how many years will it take for real GDP in Germany to double?单项选择题
A
a. 10
B
b. 30
C
c. 25
D
d. 20
E
e. 15

Question

Suppose the real GDP growth rate in Germany consistently averages 3.5% per year. Approximately how many years will it take for real GDP in Germany to double?

BlackTom AI · Accepted Answer

The question asks how long it takes for real GDP to double when the growth rate is a steady 3.5% per year. This is a classic doubling-time problem often approached with the Rule of 70, which estimates doubling time as 70 divided by the growth rate in percent.

Option a. 10: If you attempted to double in 10 years, that would require a growth path much higher than 3.5% on average. Using 3.5% per year, the growth compounds to about (1.035)^10 ≈ 1.41, i.e., a 41% increase, far short of doubling. So this is too short a horizon.

Option b. 30: Doubling in 30 years would imply an average growth rate closer to 70/30 ≈ 2.33%. Since the actual rate is 3.5%, this horizon would yield more than a 2x increase, making 30 years too long relative to the given rate. The time required is shorter than 30 years.

Option c. 25: A 25-year doubling would correspond to a required rate around 70/25 = 2.8% if we used the Rule of 70. Our actual rate of 3.5% is higher, which means the doubling would occur sooner than 25 years, so this option underestimates the speed of growth.

Option d. 20: Using the Rule of 70, 70/3.5 equals exactly 20 years. This alignment shows that a steady 3.5% growth rate roughly doubles real GDP in about 20 years, given the compounding effect over time. This is the horizon implied by the stated growth rate.

Option e. 15: A 15-year doubling would require a much larger average growth rate (roughly 70/15 ≈ 4.67%). Since the actual growth is 3.5%, achieving doubling in only 15 years is implausible under the stated conditions, making this option too optimistic.

In summary, each incorrect choice either underestimates or overestimates the needed time based on how compounding at 3.5% accumulates GDP, while the 20-year estimate directly mirrors the Rule of 70 calculation for the given growth rate.

Suppose the real GDP growth rate in Germany consistently averages 3.5% per year. Approximately how many years will it take for real GDP in Germany to double?单项选择题

类似问题

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately

Suppose average GDP growth rate is 5%. At this rate, how many years will it take to double?

The country of Lower Skipjack has been experiencing economic growth of 3.5%. If the growth continues at this rate, how many years will it take for the economy to double in size?

36. The economy has an annual inflation rate of 3.5 percent. It will take approximately how many years for the price level to double? A. 10 years B. 20 years C. 25 years D. 30 years

Suppose the real GDP growth rate in Germany consistently averages 3.5% per year. Approximately how many years will it take for real GDP in Germany to double?

Suppose the real GDP growth rate in Germany consistently averages 3.5% per year. Approximately how many years will it take for real GDP in Germany to double?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单