Debolina Samanta posted an Question
July 30, 2020 • 01:49 am 30 points
  • UGC NET
  • Economics

Time series question

2 Answer(s) Answer Now
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  • Debolina samanta

    got it... thank you 😊

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    I am glad. If you have any other questions in Economics, I'll be happy to help.

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    Sure.

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    Nidhi taparia Best Answer

    Also, as a general rule, whenever a trend line is shown in the form of e^(rt) or Ae^(rt), where t is the time period, the value of r gives us the growth rate. You can confirm this by putting t=2,3,4... and then finding the annual growth rate by finding percentage change in Y from one period to the next.

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    Nidhi taparia

    Firstly, the question is incorrectly written. Trend growth rate is always in the form of e^(rt); t or the time period is part of the power term. So the question actually is = Y = 136e^(0.021T) Coming to the answer, the growth rate is 0.021 or 2.1%. Just put the value of T as 0 and then as 1. This will give the value of Y in current and next time period. Then calculating the percentage change in Y will give 0.021 or 2.1%. If this explanation is not very clear, let me know. I'll show the calculation on a paper.

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    can you please show it on a paper .. it will be helpful.. thank you 😊

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