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2. Suppose that the variable, yt, grows at a constant rate g, over discrete time t.This means that the law of motion of y is ytyt (1 +9), and the value of y at time t, as a function of the initial value yo is given by: ye o (19) (a) Prove that In (ve) is a linear function of time. (b) The slope of the In () is approximately equal to g. That is, prove that lim dln (v) /dt yt) /dt 9-0

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2 七 (a) Taking both sidesIf you have any doubt feel free to ask.

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