4. Use the data from Table 6.1 to calculate annual growth rates of GDP per capita for...
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4. Use the data from Table 6.1 to calculate annual growth rates of GDP per capita for each country listed over the period 1950–2008. [Note: The annual growth rate z will satisfy the equation (1 + z) 58 = GDP2008/GDP1950. To solve this equation for z using a calculator, take logs of both sides of the equation.] You will find that Germany and Japan, two countries that suffered extensive damage in World War II, had the two highest growth rates after 1950. Give a reason, based on the analysis of the Solow model, for these countries’ particularly fast growth during this period.
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