macroecon1-1 - 2004 36939 2005 37773 the numbers in part C...

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Jason Frankel Intermediate Macroeconomics Homework 1 Year % growth rate (a) growth rate LN (b) 1950 11745 1960 13951 1970 18561 1980 22784 1990 28598 1995 30525 1996 31396 2.85% 2.81% 1997 32520 3.58% 3.52% 1998 33544 3.15% 3.10% 1999 34367 2.45% 2.42% 2000 35265 2.61% 2.58% 2001 35165 -0.28% -0.28% 2002 35368 0.58% 0.58% 2003 35895 1.49% 1.48% 2004 36939 2.91% 2.87% 2005 37773 2.26% 2.23% In part a, I used a simple formula of 100*(Yt/Yt-1) which gave me the percentage change. The numbers in part b are very similar, if not the exact same to my values in part a. Year % growth rate pt c growth rate LN (d) 1950 11745 1960 13951 18.78% 17.21% 1970 18561 33.04% 28.55% 1980 22784 22.75% 20.50% 1990 28598 25.52% 22.73% 1995 30525 1996 31396 1997 32520 1998 33544 1999 34367 2000 35265 23.31% 20.96% Real GDP/ cap in 2000 dollars Real GDP/ cap in 2000 dollars
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2001 35165 2002 35368 2003 35895
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Unformatted text preview: 2004 36939 2005 37773 the numbers in part C in terms of natural log cause you to make an error in regards to the growth rate over a given decade. Typically the error is roughly 10% of what the actual growth rate is. The reason for this is because when we take the natural log between two numbers, you do not take into account the compounded interest on the growth from year to year. Part D- The largest growth rate in terms of decade was from 1960 to 1970. The economy grew by 33.04% in terms of Real GDP per Capita. The least growth in terms of decade was from 1950 to 1960. The growth in this decade was only 18.78%....
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macroecon1-1 - 2004 36939 2005 37773 the numbers in part C...

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