he average rate of growth for slow growth countries is around 2% per year, and f

Question

he average rate of growth for slow growth countries is around 2% per year, and for fast growth, greater than If instead the growth rate is 7%, doubling time Suppose the growth rate of the economy is 2%. The size of the economy roughly doubles every for the economy is: 5 years O 20 years O 20 years O 10 years O 35 years O 50 years or more O 35 years O 5 years O 10 years 50 years or more Economic growth is important to understand because: O It is closely tied to standard of living O Growth guarantees that the rich get richer and the poor get poorer. O Income equality cannot exist without growth. O Understanding economic growth is key to getting a banking job after graduation

Explanation / Answer

The doubling time is approximated by 70/r where r is the growth rate

For 2% growth rate, economy doubles in 70/2 = 35 years

For 7% growth rate, economy doubles in 70/7 = 10 years

Economic growth is important to understand because:

It is closely tied to the standard of living

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