If y Y L where Y Total GDP L Population y Per capita GDP then-00679
This subjective question is related to the book/course
vu cs408 Human Computer Interaction.
It can also be found in
vu cs408 Mid Term Solved Past Paper No. 1.
Question 1: If y = Y / L, where, Y = Total GDP, L = Population, y = Per capita GDP then prove that Growth rate of per capita income = Growth rate of total output - Growth rate of population
Where,
Y = Total GDP
L = Population
y = Per capita GDP
Taking log of both sides
ln y = ln Y - ln L
Taking derivative w.r.t. time
1/y (dy/dt) = (dY/dt)/Y - (dL/dt)/L
gy = gY - gL
Growth rate of per capita income = Growth rate of total output - Growth rate of population
Answer:
y = Y / LWhere,
Y = Total GDP
L = Population
y = Per capita GDP
Taking log of both sides
ln y = ln Y - ln L
Taking derivative w.r.t. time
1/y (dy/dt) = (dY/dt)/Y - (dL/dt)/L
gy = gY - gL
Growth rate of per capita income = Growth rate of total output - Growth rate of population
