Question from the end of world war ii to the dismantling of, Ask an Expert

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Question: From the end of World War II to the dismantling of the Berlin Wall in 1989, per capita real GDP in West Germany rose from approximately $2,000 to $20,000, while per capita GDP in East Germany stayed around $2,000. If the investment/GDP ratio averaged about 25% during that period in West Germany, what do you think it was in East Germany? What factors other than capital stock contributed to the lack of growth in East Germany?

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