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1. Predictions of the Solow growth theory that seem to find support in real-world data include a. catch-up growth: that is, poorer countries growing rapidly
1. Predictions of the Solow growth theory that seem to find support in real-world data include
a. catch-up growth: that is, poorer countries growing rapidly at first and decelerating as they converge toward the top world income levels.
b. convergence: that is, among countries with similar parameters (e.g. savings rate and productivity levels), poorer countries tend to grow faster than richer ones. c. the importance of devoting a significant share of GDP to investment for attaining high growth, at least in the medium-run. d. all of the above.
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