Question
support that two countries initially start off at the same GDP per capita in 1940. After 70 years the countries have large differences in GDP
support that two countries initially start off at the same GDP per capita in 1940. After 70 years the countries have large differences in GDP per capita in the year 2010 with one the country having 30000 more than the other country . what is the most likely reason for this large disparity in GDP per capita between the two countries.
a.the differences in the amount of goverment spending per capita between two countries.
b. the differences in GDP per capita growth between the two countries and the effect of compounding.
c. the differences in the severity of the bussiness cycles between two countries.
d. the differences in GDP per capita growth relative to productivity growth between two countries and the effcect of compounding declines
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