Question: Use the data from Table 6.1 (p. 181) to calculate annual growth rates of GDP per capita for each country listed over the period 1950-1998.

Use the data from Table 6.1 (p. 181) to calculate annual growth rates of GDP per capita for each country listed over the period 1950-1998. (The annual growth rate z will satisfy the equation (1 + z)48 = GDP1998/GDP1960. 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 growth model, for these countries' particularly fast growth during this period.

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