Suppose per capita real GDP grows by 3.5 per year. Based on the ...

[SO00]

Suppose per capita real GDP grows by 3.5 per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double (i.e., increase by 100)?
 
  A) 10 years B) 35 years C) 20 years D) 3.5 years

Question 2

The classical model uses the assumption that
 
  A) all wages and prices are flexible.
  B) interest rates are not flexible.
  C) monopoly is widespread in the economy.
  D) economic markets are fragile and have no tendency to move towards an equilibrium.

[sultansheikh]

Answer to Question 1

C

Answer to Question 2

A