In exercise 6, the correct way to compute the average growth rate is to apply equation (3.9).

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In exercise 6, the correct way to compute the average growth rate is to apply equation (3.9). An alternative€”but incorrect€”way is to take the percentage change divided by the number of years: for example,
Yo Yo 0.

Compute the growth rates with this formula; they should be substantially different from what you got before. What is the explanation for this difference?

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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