Question

Zt is a function of Xt, Y4 and Ut. Express the growth rate of Zų as a function of growth rates of Xt, Yt and Ut for the folloQuestion 4.2 (5 points) ZtQuestion 4.3 [5 points) Z4 = VX+Y4

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Answer #1

Note:

4.1.

Applying logarithm, we have:

Differentiating with respect to t, we get:

Zg = 2 Xg + 3 Yg

4.2.

Applying logarithm, we have:

Differentiating with respect to t, we get:

4.3.

Applying logarithm, we have:

Differentiating with respect to t, we get:

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