Japan and Germany, two countries that suffered extensive damage in World War II, had very high growth rates after 1950. Based on the Solow model, why might this have been the case?
A. The two countries became known for innovation, and developed new technologies faster than other nations.
B. Both countries engaged in policies designed to yield a very high savings rate, in order to catch up.
C. The gap between their current capital-labor ratio and steady-state ratio was very high, creating high growth as they caught up.
D. None of the above.