Convergence Is the Idea That ________ Will Equalize Across Nations

question 94

Multiple Choice

Convergence is the idea that ________ will equalize across nations as they approach the steady state.

• A) the level of education
• B) the level of real gross domestic product (GDP)
• C) the level of real gross domestic product (GDP)per capita
• D) the level of environmental quality
• E) political stability

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Definitions:

Savings

Money that is set aside from disposable income or after personal expenses have been covered, often put into a deposit or an investment for future use.

Wealth Effect

The change in spending and consumption patterns caused by changes in perceived wealth.

Recessions

are described as periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in successive quarters.

Saving Exceeded Investment

A situation where the amount of savings in an economy surpasses the level of investment spending.