$($c$)$ After World War II$,$ real GDP growth in Germany and Japan was very

high. How do your results in $($a$)$ and $($b$)$ shed light on this historical

fact?

Question $4(20$ points$)$

$(25$ points$)$ Suppose that in the Solow growth model the saving rate is $6$ per$-$

cent $($s $=0\mathrm{.}06),$ population growth rate is $1$ percent $($n $=0\mathrm{.}01),$ depreciation

rate is $7$ percent $($d $=0\mathrm{.}07),$ and production function is Y $=$ zF $($K$,$ N $)=$

zK$1/3$N $2/3.$ Suppose that z $=3.$

$($a$)$ What is the steady state level of capital per worker and consumption

per worker?