Consider the following data on real GDP per capita in: Year Per Capita Real GDP 1950 14 339 1960 17 351 1970 23...

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Economics

Consider the following data on real GDP per capita in:
Year
Per Capita Real GDP
1950
14 339
1960
17 351
1970
23 790
1980
30 732
1990
35 868
2000
43 288
2010
46 406
2011
47 554
2012
47 741
2013
48 066
2014
48 780
a) Calculate the percentage growth rates in real GDP per capitain each of the years 2011 through 2014, from the previous year.
b) Now, instead of calculating the annual percentage growthrates in the years 2011 through 2014 directly, use as anapproximation
100Ã—logyt-logyt-1
where yt is real per capita GDP in yeart. How close does this approximation come to the actualgrowth rates you calculated in part (a)?

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4.1 Ratings (642 Votes)

a The annual percentage growth rates in real GDP per capita is given by Yt Yt1Yt1100 Thus the annual percentage growth rates in real GDP per capita for each of the years 2011 through 2014 from the previous year is Year Per Capita Real GDP The percentage growth rates in real GDP per capita 1950 14339 1960 17351 1970 23790 1980 30732 1990 35868 2000 43288 2010 46406 2011 See Answer

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Year	Per Capita Real GDP
1950	14 339
1960	17 351
1970	23 790
1980	30 732
1990	35 868
2000	43 288
2010	46 406
2011	47 554
2012	47 741
2013	48 066
2014	48 780