Final answer:
Jordan's nation's real GDP doubled in 14 years, indicating an annual growth rate of 5%, as estimated using the Rule of 70.
Step-by-step explanation:
If Jordan's nation's real GDP doubled in 14 years, we can calculate the rate of growth of real GDP using the Rule of 70. The Rule of 70 is a way to estimate the number of years it takes for a quantity to double at a consistent annual growth rate. According to the Rule of 70, you divide the number 70 by the annual growth rate to get the number of years it takes for the initial quantity to double.
Since we know it took 14 years to double, we can set up the following equation:
70 / growth rate = 14 years.
Solving for the growth rate gives us 70 / 14 = 5.
Therefore, the annual growth rate is 5%.
The notion that a 2% slower growth rate can have significant long-term effects on an economy is also important to consider. Even small differences in annual growth rates can lead to considerable divergences in economic outcomes over time due to the power of compounding.