TEST BANK FOR Advanced Macroeconomics By David Romer Converted
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Exam (elaborations)
Exam (elaborations) TEST BANK FOR Advanced Macroeconomics By David Romer (Solution Manual)-Converted
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---291November 20212021/2022A+
- (a) Since the growth rate of a variable equals the time derivative of its log, as shown by equation (1.10) 
in the text, we can write 
(1) 
 ( ) 
( ) 
Z t ln ( ) ln ( ) ( ) 
Z t 
d Z t 
dt 
d X t Y t 
dt 
 . 
Since the log of the product of two variables equals the sum of their logs, we have 
(2) 
 ( ) 
( ) 
Z t ln ( ) ln ( ) ln ( ) ln ( ) 
Z t 
d X t Y t 
dt 
d X t 
dt 
d Y t 
dt 
 
 
 , 
or simply 
(3) 
 ( ) 
( ) 
 ( ) 
( ) 
 ( ) 
( ) 
Z t 
Z ...
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