Computing growth Rates Xt=(1.05)^t and Yt=(1.02)^t calculate growth rate for Zt?

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(a). Z=xy ?
(b). Z=x/y?
(c). Z=(x/y)^2

2007-10-26 12:46:46 · 2 answers · asked by John M 1 in Social Science ➔ Economics

Because everything is raised to the power t you can simplify expressions, for example
Z^t=X^t*Y^t=(1.05)^t *(1.02)^t = (1.05 *1.02)^t =(1.071)^t

2007-10-26 13:49:24 · answer #1 · answered by meg 7 · 0⤊ 0⤋

sorry mate just use a calculator

2007-10-26 19:49:28 · answer #2 · answered by Conspicuously Inconspicuous 2 · 0⤊ 0⤋