Question

real - time data analysis exercise*
real gdp per capita in the united states grew from about $6,000 in 1900 to about $67,400 in 2023, which represents an annual growth rate of 1.99 percent.
*real - time data provided by federal reserve economic data (fred), federal reserve bank of saint louis.
if the united states continues to grow at this rate, it will take 35.18 years for real gdp per capita to double. (enter your response rounded to two decimal places.)
if government economic policies meant to stimulate economic growth result in the annual growth rate increasing to 2.64 percent, it will take □ years for real gdp per capita to double. (enter your response rounded to two decimal places.)

Explanation:

Step1: Use the rule of 70 formula

The rule of 70 formula is \(t=\frac{70}{r}\), where \(t\) is the time to double and \(r\) is the growth rate (in percentage terms).

Step2: Substitute the growth rate

Given \(r = 2.64\) (the new growth rate). Then \(t=\frac{70}{2.64}\)

$$t=\frac{70}{2.64}\approx26.52$$

Answer:

\(26.52\)