Asked by ahad ali Siddiqui on Jun 30, 2024
Verified
If GDP is expected to increase at a steady rate of 3% per year,how many years would it take for living standards to double?
A) 10
B) 20
C) 24
D) 30
GDP
Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period.
Living Standards
The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or geographic area.
- Comprehend how changes in GDP growth affect living standards throughout different periods.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
C
Explanation :
To calculate the number of years it takes for living standards to double, we can use the rule of 70. The rule of 70 states that the number of years it takes for a variable to double is approximately 70 divided by the annual growth rate of that variable. In this case, the annual growth rate is 3%, so we can calculate the number of years as 70/3 = 23.33, which we can round up to 24 years. Therefore, the answer is C) 24.
Learning Objectives
- Comprehend how changes in GDP growth affect living standards throughout different periods.
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