Question: how to apply growth rate rules in this question? 2) (4 pt) Growth rate rules Consider two functions of time, act = e and yt

how to apply growth rate rules in this question?

how to apply growth rate rules in this question? 2) (4 pt)

2) (4 pt) Growth rate rules Consider two functions of time, act = e and yt = e . Calculate the growth rates of the following composites / transformations of these two functions: N) = 3%; N) = W) = (96th where B = 1/2; N) = as? . W where 0.0313 0.06t gt 5 = 1/3. (Hint: check that :rt and yt each have constant growth rates, then apply product, ratio and power growth rate rules as appropriate) b) Consider two functions of time, wt = 82.00% and yt 2 yo . e , where z is an unknown number and go is a given number. Find the value of z for which the ratio 3: does not change (i.e. stays constant) over time (Hint: your answer should not 0.06t depend on the numerical value of go)

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