Assignment Task:
Measured by purchasing power parity in term of constant 2017 international dollars, China's real GDP in 2021 was 25 trillion dollars and the US GDP in 2021 was 21 trillion dollars. Assume that capital share of GDP is 0.5 in both countries and capital stock growth rate equals the economic growth rate.
China's labor force is expected to decline by 1 percent each year from 2022 to 2050 and by 2 percent each year from 2051 to 2100. China's autonomous productivity growth rate is expected to be 2.5 percent each year from 2022 to 2050 and 1.5 percent each year from 2051 to 2100. What will be China's real GDP in 2050? What will be China's real GDP in 2100? (use trillion dollars as units and round your results to the nearest tenth place)
The US labor force is expected to grow by 1 percent each year from 2021 to 2050. The US labor force will not grow or decline after 2050. The US autonomous productivity growth rate is expected to be 1 percent each year from 2022 to 2100. What will be the US real GDP in 2050? What will be the US real GDP in 2100? (Use trillion dollars as units and round your results to the nearest tenth place)
What will be the ratio of China's GDP to the US GDP in 2050? What will be the ratio of China's GDP to the US GDP in 2100? (Round your results to the nearest hundredth place)