Consider the following data on real GDP per capita in the United States
tutor4helpyou (Not rated)
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- Consider the following data on real GDP per capita in the United States:
Year U.S. Real GDP PerCapita(2005dollars)
1950----$13244
1960----$15773
1970----$20994
1980----$25752
1990----$32275
2000----$39744
2002----$40063
2003----$40703
2004----$41707
2005----$42572
2006----$43282
2007----$43785
2008----$43287
2009----$41377
2010----$42311
2011----$42733
(a) Calculate the percentage growth rates in real GDP per capita in each of the years 2003 through 2011, from the previous year.
(b) Now, instead of calculating the annual percentage growth rates in the years 2003 through 2011 directly, use as an approximation 100 * (lnyt-ln yt-1), where yt is real per capita GDP in year t . How close does this approximation come to the actual growth rates you calculated in part (a)?
(c) Repeat parts (a) and (b), but now calculate the percentage rates of growth in real per capita GDP from 1950 to 1960, from 1960 to 1970, from 1970 to 1980, from 1980 to 1990, and from 1990 to 2000. In this case, how large an error do you make by approximating the growth rate by the change in the natural log? Why is there a difference here relative to parts (a) and (b)?
12 years ago
Consider the following data on real GDP per capita in the United States
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