8. Studies have found a relationship between a countrys yearly rate of economic growth and the yearly

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8. Studies have found a relationship between a country’s yearly rate of economic growth and the yearly rate of increase in airborne pollutants. It is believed that a higher rate of economic growth allows a country’s residents to have more cars and travel more, thereby releasing more airborne pollutants.

a. Which variable is the independent variable? Which is the dependent variable?

b. Suppose that in the country of Sudland, when the yearly rate of economic growth fell from 3.0% to 1.5%, the yearly rate of increase in airborne pollutants fell from 6% to 5%. What is the average slope of a nonlinear curve between these points using the arc method?

c. Now suppose that when the yearly rate of economic growth rose from 3.5% to 4.5%, the yearly rate of increase in airborne pollutants rose from 5.5% to 7.5%. What is the average slope of a nonlinear curve between these two points using the arc method?

d. How would you describe the relationship between the two variables here?

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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