Teaching and Educational Methods
Calculating and Interpreting Percentage Changes for Economic Analysis
Matthew A. Andersen
University of Wyoming
JEL Codes: A20, C02
Keywords: Growth rates, percentage change
Publish Date: November 30, 2022
Volume 1, Issue 1
Abstract
A strong understanding of calculating and interpreting percentage changes and growth rates is critically
important for economists. This is because many fundamental concepts such as the time value of money,
and many commonly reported economic measures, such as the rate of return on assets, price inflation,
and measures of economic growth, require a firm understanding of percentage changes. This paper
presents a brief primer on calculating and interpreting percentage changes and growth rates. The
purpose is to illuminate these measures, facilitate their interpretation, and clarify their usage for
economic analysis.
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Articles in this issue
Job Attribute Preferences of Undergraduate Agricultural Majors—Do They Match with Careers in Grain Merchandising?
Keith D. Harris and Brian C. Briggeman
Calculating and Interpreting Percentage Changes for Economic Analysis
Matthew A. Andersen
Assessing Student Learning Using a Digital Grading Platform
Andrew W. Stevens
Enhancing the Teaching of Product Substitutes/Complements: A Pedagogical Note on Diversion Ratios
Oral Capps, Jr. and Senarath Dharmasena
Teaching Undergraduate Economics: Emphasize Early the Meaning of Vertical Distances and of Their Summation Over Quantities
Matthew G. Interis
Occupational Health and Safety Issues at Agribusiness Retailers
Erik Hanson and Michael Boland
Let's take a moment to celebrate great teaching!
James A. Sterns
Moneyball in the Academy: Whiffing on the Quality of Education?
Paul N. Wilson