Growth Rate in Potential GDP

CFA Level II Derivatives
#1

Hello,

Could you please help me understading how they got the final numbers for Example No.9 y reading 14.

China (using 1995- 2008)= 1.1% + 7.5% = 8.6%

India (using 1995 -2008) = 2.1% + 4.6% = 6.7%

They got the results from the following table:

Country Year Growth in hours Gowth in Labor Pro

China 95-05 1.1% 6.7%

China 05-08 1.2% 10.3%

India 95-05 2.1% 4.2%

India 05-08 2.2% 6.0%

thanks for your help

Peter

#2

weighted average timing for the periods.

I.e China. (1.1% * 10/13) + ( 1.2% * 3/13) + (6.7% * 10/13) + (10.3% * 3/13)

#3

Thanks!!!