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2) (4 pt) Growth rate rules Consider two functions of time, act = e and yt = e . Calculate the growth rates of the

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2) (4 pt) Growth rate rules Consider two functions of time, act = e and yt = e . Calculate the growth rates of the following composites / transformations of these two functions: N) = 3%; N) = W) = (96th where B = 1/2; N) = as? . W where 0.0313 0.06t gt 5 = 1/3. (Hint: check that :rt and yt each have constant growth rates, then apply product, ratio and power growth rate rules as appropriate) b) Consider two functions of time, wt = 82.00% and yt 2 yo . e , where z is an unknown number and go is a given number. Find the value of z for which the ratio 3: does not change (i.e. stays constant) over time (Hint: your answer should not 0.06t depend on the numerical value of go)

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