Current Events > Anyone that is good with economics or math, can you help me out?

(+) Yeah! (+)

The Answer is B) but can anyone explain how to get this?

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How come that's not written up in a sane kind of way ?

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PrettyBoyFloyd posted...

How come that's not written up in a sane kind of way ?

Be a little more specific if you can. Are you referring to the question or the answer?

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While this topic is still up, can anyone take a stab at this? The answer is B)



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bump

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1) I think this question is written in the most confusing way possible.

2) that exponent of 1/2 on the y is the same as saying the square root of y

3) I believe the problem should be done like below

1.03/sqrt(1.04) = 1.00999 1.01

1.01 is the result if you round the answer, which is the same as 1% growth so the answer is b

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Unless "growth rate" has a very specific meaning in this context, this problem is not written in a mathematically coherent way. How are x and y growing? Linearly? Exponentially? Some other way? Depending on the answer, g(z) may not even be a constant.

Edit: FWIW I think the growth rate is intended to be exponential. So the growth rate of the numerator is 0.03 and the growth rate of the denominator is 0.04*(1/2) = 0.02. (The 1/2 represents the square root written as an exponent.) Therefore, g(z) = exponent of numerator - exponent of denominator = 0.03 - 0.02 = 0.01.

Whoever wrote this question is bad at their job.

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