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3 Mar 2019
4 . In the discussion of German and Japanese postwar growth, we discussed what happens when part of the capital stock is destroyed in a war. By contast, suppose that a war does not a§ect the capital stock, but that casualties reduce the labor force. Assume the economy was in a steady state before the war and the saving rate is unchanged. a) What is the immediate impact of the war on total output and on output per person? b) What happens subsequently to output per worker in the postwar economy? Is the growth rate of output per worker after the war smaller or greater than it was before the war?
4 . In the discussion of German and Japanese postwar growth, we discussed what happens when part of the capital stock is destroyed in a war. By contast, suppose that a war does not a§ect the capital stock, but that casualties reduce the labor force. Assume the economy was in a steady state before the war and the saving rate is unchanged. a) What is the immediate impact of the war on total output and on output per person? b) What happens subsequently to output per worker in the postwar economy? Is the growth rate of output per worker after the war smaller or greater than it was before the war?
Beverley SmithLv2
6 Mar 2019
