Macroeconomics 5th Edition by Olivier Blanchard

Exercise 6

Convergence between Japan and the United States since 1950
Go to the Web site containing the Penn World Table (pwt.econ.upenn.edu) and collect data on the annual growth rate of GDP per person for the United States and Japan from 1951 to the most recent year available. In addition, collect the numbers for real GDP per person (chained series) for the United States and Japan in 1973.
a. Compute the average annual growth rates of GDP per person for the United States and Japan for three time periods: 1951 to 1973, 1974 to the most recent year available, and 1991 to the most recent year available. Did the level of real output per person in Japan tend to converge to the level of real output per person in the United States in each of these three periods Explain.
b. Suppose that in every year since 1973, Japan and the United States had each continued to have their average annual growth rates for the period 1951 to 1973. How would real GDP per person compare in Japan and the United States today (i.e., in the most recent year available in the Penn World Table)