Jnu miscellaneous questions

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RS
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Jnu miscellaneous questions

RS
RS
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Re: Jnu miscellaneous questions

RS
How to approach this? Please solve.
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Re: Jnu miscellaneous questions

Kannot
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Not sure about this at all, but I think the answer should be (D) based off what I just read in this link: http://www.ucl.ac.uk/~uctpa36/C41_note_growth_accounting.pdf

Allegedly,

Xt = X0*e^(t*gxt) (Formula 1.4 in the link, please do reply to this thread if someone has a better resource that explains this, it has worked for me when I have tested it with functions but it only seems to offer an approximation, other than that I don't actually "understand" what it's saying)

Xt = Value of X at t
X0 = Initial value of X
t = time periods
gxt = growth rate of x at t

So, simplifying this,
ln(Xt) = ln(X0) + tgt

In our case, we wish to express B1 in terms of A1, let's try to find out (B1/A1)

We know,
gbt = u+1
gat = u

So,

ln(B1) = ln(B0) + (1)(gbt)
ln(B1) = u+1 (Technically ln(B0) would be undefined but I suppose it makes sense to regard it as zero in this context, thinking graphically?)

In the same way,

ln(A1) = u

So let's assume B1=xA1 (This is a huge assumption I suppose, since it technically does not consider the solutions that do not imply a linear operation on A to get B, it requires one to assume that option b is definitely not right)

ln(B1/A1)=ln(x)
ln(B1)-ln(A1)=ln(x)
Substituting,
u+1-u = ln(x)
1=ln(x)
x=e

Therefore, B=eA

I am more or less sure that this is wrong

Just going to put this here though, will reply if I find anything else.