TEST BANK FOR Advanced Macroeconomics By David Romer Converted
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Exam (elaborations) TEST BANK FOR Advanced Macroeconomics By David Romer (Solution Manual)-Converted
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(a) Since the growth rate of a variable equals the time derivative of its log, as shown by equation (1.10)
in the text, we can write
(1)
( )
( )
Z t ln ( ) ln ( ) ( )
Z t
d Z t
dt
d X t Y t
dt
.
Since the log of the product of two variables equals the sum of their logs, we have
(2)
( )
( )
Z t ln ( ) ln ( ) ln ( ) ln ( )
Z t
d X t Y t
dt
d X t
dt
d Y t
dt
,
or simply
(3)
( )
( )
( )
( )
( )
( )
Z t
Z ...
Exam (elaborations)
Exam (elaborations) TEST BANK FOR Advanced Macroeconomics By David Romer (Solution Manual)-Converted
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(a) Since the growth rate of a variable equals the time derivative of its log, as shown by equation (1.10) in the text, we can write (1) ( ) ( ) Z t ln ( ) ln ( ) ( ) Z t d Z t dt d X t Y t dt . Since the log of the product of two variables equals the sum of their logs, we have (2) ( ) ( ) Z t ln ( ) ln ( ) ln ( ) ln ( ) Z t d X t Y t dt d X t dt d Y t dt , or simply (3) ( ) ( ) ( ) ( ) ( ) ( ) Z t Z ...
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