Re: macro question

Posted by RajEco on Mar 25, 2014; 3:19pm
URL: http://discussion-forum.276.s1.nabble.com/macro-question-tp7585456p7585488.html

You can work that out by taking the logs and then by taking the growth rates.-

Let real GDP per capita be yn be real GDP per capita

yn= Y/N   where Y is the real Gdp and N is the population.

taking logs on both sides

log yn = LogY - Log N
Taking the derivative with respect to time-

dlog yn/dt  = dlogY/dt - dlogN/dt
=> growth rate of real gdp per capita = 8 - 2.5 = 5.5 %

(note d logx/dt implies the growth rate of x)