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I need help with question 3, thank you. :) 3. China's remarkable economic growth and large population have created one of the world's largest economies.

I need help with question 3, thank you. :)

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3. China's remarkable economic growth and large population have created one of the world's largest economies. In 2000, GDP in China was half the size of US GDP, but growing twice as fast. The question is how this is likely to change over the next 20 years. Will China become the worlds largest economy? Your mission is to estimate the economic magnitudes of the US and China in 2020 using the Solow model. In 2000, the two economies had the following characteristics: ment China 4,717 7,020 764.0 United States 9,169 19,600 142.1 GDP and capital are reported in billions of 2000 US dollars, employment and popu- lation in millions. The parameter values are: China 22% 6% 1.0% 4% United States 20% 6% 0.5% 2% (a) Compute TFP in 2000 using the production function Y 2 AK 6N3 China TFP in 2000: United States TFP in 2000: (b) Compute time paths for GDP in both countries starting in 2000 and ending in 2020. Remember that, at each date, we compute employment N and total factor productivity A from their values at the previous date by using Nt+1 = (1 + MN: and AH] = (1 + 901%, where n. and g are the growth rates of employment and TFP, respectively. Capital evolves as Kt+1 = (1 di} + sAth NE. Compute China total GDP in 2020: United States total GDP in 2020: China per-worker GDP in 2020: United States per-worker GDP in 2020

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