Re: jnu 2017 answers sss, let's discuss

Posted by Econenthusiast on Dec 06, 2017; 3:02pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2017-answers-sss-let-s-discuss-tp7608176p7608383.html

hey mesh ... guess this answer might work:

We take Y = A N( 1 - u )
Now we find the growth rate of Y w.r.t to A, N and 1-u

Ln Y = Ln A + Ln N + Ln ( 1-u )

dY/ dT x 1/Y = dA/dt x 1/A + dN/dt x 1/N + d(1-u)/dt x 1/1-u

Therefore Gy = Ga + Gn + G(1-u)

For A this becomes 4 percent = 2 % + Gn + 0 ( since unemployment rates don’t change with time )
Therefore Gn = 2%
Similarly for B, 8% = 4% + Gn + 0
Gn = 4%