Suppose:

The variables in the economy evolve in time as follows:

Lt+1 = (1 + n) Lt

At+1 = (1 + g) At

Kt+1 = (1 - d) Kt + It

It = s Yt

And GDP is: : Y = A K1/3 N2/3

Suppose the data for the US in 2018 is:

GDP = 19,169

N = 142

K = 19,600

Saving rate: s = 20%

Depreciation rate: d = 6%

Employment growth rate: n = 0.5%

TFP growth rate: g = 2%

Calculate the US GDP for the next 10 years using excel.