Answer to Question #240914 in Macroeconomics for Zoobs

Question

Use a numerical example to explain the difference between the rate of change and the level of change between two values.

Answer 1

An example of a rate of change

Fuel price increased by $ 1.45 from 2007 to 2015. Over 8 years rate of change was

$\frac{\Delta y}{\Delta x} =\frac{{1.45}}{\text{8years}}\approx0.18125\$$ per year.

An example of level of change

If the price of fuel in 2007 was $9 and in 2015 the price of fuel was $10,then the level of change in 2015 will be $10-$9= $1