Question

Chinese economic growth is the outstanding feature of the world economic scene over the past two decades. In 2010, U.S. output was $14.7 trillion, and Chinese output was $5.8 trillion. Suppose that from now on, the output of China grows at an annual rate of 10.5% per year, whereas the output of the United States grows at an annual rate of 2.6% per year. These are the values in each country for the period 2000–2007. Using these assumptions and a spreadsheet, calculate and plot U.S. and Chinese output from 2010 over the next 100 years. The level of U.S. output in 20 years will be $ trillion. (Round your response to two decimal places.) The level of Chinese output in 30 years will be $ trillion. (Round your response to two decimal places.)

Answer 1

In 2010, U.S. output = $14.7 billion

Chinese output = $5.8 trillion

Growth of Chinese output = 10.5% per year

Growth of US output = 2.6% per year

I am giving you an example to calculate growth rate of US economy in 2011. As in 2010, the output level is $14.7 and grows at 2.6% per year. It makes the level of output in 2011 = 14.7 * 1.026 = $15.08

Year	US output (in trillion) (growing at 2.6% per year)	Chinese output (in trillion) (growing at 10.5% per year)
2010	14.70	5.80
2011	15.08	6.41
2012	15.47	7.08
2013	15.88	7.83
2014	16.29	8.65
2015	16.71	9.56
2016	17.15	10.56
2017	17.59	11.67
2018	18.05	12.89
2019	18.52	14.25
2020	19.00	15.74
2021	19.50	17.39
2022	20.00	19.22
2023	20.52	21.24
2024	21.06	23.47
2025	21.60	25.93
2026	22.17	28.66
2027	22.74	31.67
2028	23.33	34.99
2029	23.94	38.66
2030	24.56	42.72
2031	25.20	47.21
2032	25.86	52.17
2033	26.53	57.64
2034	27.22	63.70
2035	27.93	70.39
2036	28.65	77.78
2037	29.40	85.94
2038	30.16	94.97
2039	30.95	104.94
2040	31.75	115.96
2041	32.58	128.13
2042	33.42	141.59
2043	34.29	156.45
2044	35.18	172.88
2045	36.10	191.03
2046	37.04	211.09
2047	38.00	233.26
2048	38.99	257.75
2049	40.00	284.81
2050	41.04	314.72
2051	42.11	347.76
2052	43.20	384.28
2053	44.33	424.63
2054	45.48	469.21
2055	46.66	518.48
2056	47.87	572.92
2057	49.12	633.07
2058	50.40	699.55
2059	51.71	773.00
2060	53.05	854.17
2061	54.43	943.85
2062	55.84	1042.96
2063	57.30	1152.47
2064	58.79	1273.48
2065	60.31	1407.19
2066	61.88	1554.95
2067	63.49	1718.22
2068	65.14	1898.63
2069	66.84	2097.99
2070	68.57	2318.27
2071	70.36	2561.69
2072	72.19	2830.67
2073	74.06	3127.89
2074	75.99	3456.32
2075	77.96	3819.23
2076	79.99	4220.25
2077	82.07	4663.38
2078	84.20	5153.03
2079	86.39	5694.10
2080	88.64	6291.98
2081	90.95	6952.64
2082	93.31	7682.67
2083	95.74	8489.35
2084	98.22	9380.73
2085	100.78	10365.71
2086	103.40	11454.10
2087	106.09	12656.78
2088	108.85	13985.75
2089	111.68	15454.25
2090	114.58	17076.95
2091	117.56	18870.03
2092	120.61	20851.38
2093	123.75	23040.77
2094	126.97	25460.06
2095	130.27	28133.36
2096	133.66	31087.36
2097	137.13	34351.54
2098	140.70	37958.45
2099	144.36	41944.09
2100	148.11	46348.22
2101	151.96	51214.78
2102	155.91	56592.33
2103	159.96	62534.52
2104	164.12	69100.65
2105	168.39	76356.22
2106	172.77	84373.62
2107	177.26	93232.85
2108	181.87	103022.30
2109	186.60	113839.64
2110	191.45	125792.80

As per the data, China will surpass the US economy in 2024.

Level of US output in 20 years will be $24.56 trillion

Level of Chinese output in 20 years will be $115.96 trillion