Question
Supposextgrows at 2% per year andytgrows at 5% per year. For each expression ofztbelow, calculate(a)The growth rate ofzt (b)The value of ztfor t=0, t=1, t=2,
Supposextgrows at 2% per year andytgrows at 5% per year. For each expression ofztbelow, calculate(a)The growth rate ofzt
(b)The value of ztfor t=0, t=1, t=2, and t=8 in terms of x0and y0
Show all your calculations.
(Note:x0andy0are used to express the values ofxtandytat timet= 0.)
(i)zt=xtyt
(ii)zt=xt1yt2(Note:xt1refers to the value ofxat periodt1.)
(iii)z=x1/3y2/3
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
