Suppose that the economy is initially in a steady state and that some of the nation's capital stock is destroyed because of a natural disaster or war.
(a) Determine the long-run effects of this on the quantity of capital per worker and on output per worker
(b) In the short run, does aggregate output grow at a rate higher or lower than the growth rate of the labor force
(c) After WWII, growth in real GDP in Germany and Japan was very high, does this make sense