1. Show how the composition of the Chinese and US economies differ in terms of theshares of eachattributed to the main components of GDP:C, I, G, (X-M). Explain why they differ. Most recent available data for these are Q2/2020 for the US, and annual 2019 for China.
2. Compare the overall growth rates of these 2 economies during the first two quarters of 2020. How do the differences in the component shares of the 2 economies help explain the difference in their growth performance during the height of the COVID-19 crisis (Q1 and Q2/2020)
3. Using the Solow growth model, explain the driving forces behind China's rapid growth rate over the past 2 decades. What are the major challenges China faces in maintaining its rapid growth in this decade?