1. Various properties of natural logarithms:
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3. (a) Suppose variable x increases from 200 to 204. 
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5. (i) Compute the proportionate change in x . 
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7. (ii) Compute the change in lnx and compare to your answer in (i).
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9. (b) The U.S. economy grew by 3% per year for many years. At this rate, approximately how many years did it take for the U.S. economy to double in size? 
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11. (c) Suppose we have exponential growth with y≃50×1.04 t . If we regress lny on an intercept and t , what estimates do you expect to obtain for the intercept and slope coefficients?

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Answer a i The proportionate change in x is 4 ii The change in lnx is approximately 0016 which is much smaller than the proportionate change in x b If the US economy grows by 3 per year it will take a... View the full answer