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It has been argued that several economies are unable to grow because they are stuck in a low income trap. a. What is a poverty
It has been argued that several economies are unable to grow because they are stuck in a "low income trap." a. What is a poverty or low-income trap? Explain fully. b. Given that the Solow model predicts convergence, what could lead to a low income trap in the model? c. Is there "conditional" convergence in the Solow model with an income trap? Explain. d. How would you explain the failure of the "Big Push" within the context of the Solow model. Ensure you define the "Big Push.
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