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Department of Economics Fall 2009
University of California, Berkeley Professor Olney
Problem Set ! Pa"e % of 5
b +se the rules of natural logs and calculus to show that the rate of growth of a 0uotient, a/b, is the difference
between the rates of growth of a and b
( ) ( )
b of rate growth a of rate growth
b
time over b
a
time over a
b
dt
db
a
dt
da
dt
db
b dt
da
a
dt
db
db
b d
dt
da
da
a d
dt
b d
dt
a d
dt
b a d
dt
b
a
d
b
a
of rate growth
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c +se the rules of natural logs and calculus to show that the rate of growth of a variable raised to a power, b
a
, is
a times the rate of growth of b
( )
( )
b of rate growth a
b
time over b
a
b
dt
db
a
dt
db
b
a
dt
db
db
b d
a
dt
b d
a
dt
b a d
dt
b d
b of rate growth
a
a
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