Problem 1. You are given a 20-year data on real GDP in Canada.

(a) Use Excel to plot the real GDP against time over the period 2002 to 2021. (remember

to label the x-y coordinates).

(b) Use Excel to plot the natural logarithm (i.e., the log-level) of the real GDP the same

period. (remember to label the x-y coordinates)

(c) Calculate the percentage growth rate of the real GDP in each of the years.

(d) Now, instead of calculating the annual percentage growth rate directly, calculate the

log-approximation, i.e., 100 x (In (GDP) – In (GDP-1)). Compare your approxima-

tion to the results in part (c). From part (b), can you tell the average of growth rate

across the last 20 years?