15 7 of 15) The following table lists GDP and Price between 2015 and 2017. What

Question

15 7 of 15) The following table lists GDP and Price between 2015 and 2017. What is the growth rate of GDP between 2015 and 2016 using the logarithmic change method? Ikeep in decimal format: round to four decimal places 0.0000) GDP Price 2015 2016 17 $17.875 $18,325 $19,058 109.30 112.70 Save Answer Skip Question I Am Finished/Submit for Grade Note: Clicking any button other than the Save Answer button will NOT save any changes to your answers View the Great River Learning Privao For questions or concerns regarding this online Having troubles viewing something on the päge? WebCOMTw 20is a trademark of Great River

Explanation / Answer

Generally the growth rate is computed as GDPt = GDP0(1 + r%)^t for any given time period t. When logs are used the function forms the growth rate as

g = ln(GDPt) - In(GDP0)/n

= (ln(18325) - ln(17875))/1

= 2.4863%

This is the growth rate of GDP between 2015 and 2016

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