4. Use the data from Table 6.1 to calculate annual growth rates of GDP per capita for...

Question:

4. Use the data from Table 6.1 to calculate annual growth rates of GDP per capita for each country listed over the period 1950-2006. [Note: The annual growth rate z will satisfy the equation (1 + z)56 = GDP2oo6 /GDP1950 ยท 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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics Value Edition

ISBN: 978-0136114895

7th Edition

Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore

Question Posted: