Consider the following data on real GDP per capita in:
Year | Per Capita Real GDP |
1950 | 14 339 |
1960 | 17 351 |
1970 | 23 790 |
1980 | 30 732 |
1990 | 35 868 |
2000 | 43 288 |
2010 | 46 406 |
2011 | 47 554 |
2012 | 47 741 |
2013 | 48 066 |
2014 | 48 780 |
a) Calculate the percentage growth rates in real GDP per capitain each of the years 2011 through 2014, from the previous year.
b) Now, instead of calculating the annual percentage growthrates in the years 2011 through 2014 directly, use as anapproximation
100×logyt-logyt-1
where yt is real per capita GDP in yeart. How close does this approximation come to the actualgrowth rates you calculated in part (a)?
