Conditional Convergence Predicts That If Two Countries Have the Same

question 131

Multiple Choice

Conditional convergence predicts that if two countries have the same steady-state level of output,the poorer country will:

• A) grow but never be able to catch up with the richer country.
• B) catch up with the richer country because the richer country will not be able to maintain its steady-state output level.
• C) catch up with the richer country because it will grow faster than the rich country.
• D) not grow at all and will fall further behind the rich country.