A country will roughly double its GDP in twenty years if its annual growth rate
(A) 12 percent.
(B) 7.5 percent.
© 3.5 percent.
(D) 2.5 percent.
( 4 Listen

To understand how a country can double its GDP, we can use the Rule of 70, which is a simple way to estimate the number of years required to double the value of an investment based on its annual rate of return. You divide 70 by the annual growth rate. For example, at a 7.5% growth rate, it would take approximately 9.33 years to double (70/7.5), while at 3.5%, it would take around 20 years (70/3.5).

If you want to see this growth in action, look at countries like China or India, which have experienced rapid GDP growth due to industrialization and economic reforms. Their real-world examples show how sustained growth rates can lead to significant economic transformations, affecting everything from infrastructure to social programs!