Question 3: Recall in class, we discussed why difference in logs is a good approximation of growth rates when they are small. Present this argument. For full marks, follow these steps: a. Write out the formulas for growth rate and difference in logs. Modify them in a way so that they are easily comparable. [Hint: Basically you are comparing two functions] b. Draw the two functions in a graph. c. Explain the graph. Question 3: Recall in class, we discussed why difference in logs is a good approximation of growth rates when they are small. Present this argument. For full marks, follow these steps: a. Write out the formulas for growth rate and difference in logs. Modify them in a way so that they are easily comparable. [Hint: Basically you are comparing two functions] b. Draw the two functions in a graph. c. Explain the graph