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Suppose a Country's Potential Level of Real GDP Grows at a Rate

Question 3

Multiple Choice

Suppose a country's potential level of real GDP grows at a rate of 6% per year. Use the rule of 72 to calculate how long it takes for the country's potential output to double.


A) 6 years
B) 12 years
C) 24 years
D) 30 years

Correct Answer:

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