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Unformatted text preview: % ) ( ) ( ) ( * ) ( 1 ) ( * ) ( ) ( ln ) ( ln by using the chain rule we have calculated the percentage growth rate of M over time. Continuing with the rest of the equation yields: Y P V M + = + % % % % From taking the derivative of natural logs, we can derive the following rules about growth rates: Growth Rate Rules 1. Growth Rate of ( a*b ) = Growth Rate ( a ) + Growth Rate ( b ) 2. Growth Rate of b a = Growth Rate ( a ) - Growth Rate ( b ) 3. Growth Rate of b a = b * Growth Rate ( a )...
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This note was uploaded on 04/07/2011 for the course ECON 381 taught by Professor Staff during the Winter '08 term at BYU.
- Winter '08