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Problem Set No. 2 Question 1: monthly vs annual growth rates Let's call m the monthly growth rate of 1 obtained by comparing two consecutive months ("month-on-month" growth rate): Y - Yt-1 my= Yt-1 and a the rate of growth of Y measured by comparing the same month of two consecutive years ("year-on-year" growth rate): Yt - Yt-12 Yt-12 Demonstrate and interpret the following relationships: a) m. 2mm190 20-1 + mr-2 YE- + + m:-10 -12 + me-11 b)