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The Relationship Between the Level of Growth of an Economic $\frac{y_{t}}{y_{t-1}}$

Question 25

Multiple Choice

The relationship between the level of growth of an economic variable, gt, and its level, yt, is best approximated as

A) gt = $\frac{y_{t}}{y_{t-1}}$
B) gt = log yt + log yt - 1.
C) log gt = yt - yt - 1.
D) gt = log yt - log yt - 1.
E) yt = log gt - log gt - 1.

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