Question
Which of the following is a true statement regarding the economic growth model's predictions regarding convergence and what is actually happening in the world as
Which of the following is a true statement regarding the economic growth model's predictions regarding convergence and what is actually happening in the world as a whole?
A.Conditional convergence is that idea that poor countries will inevitably catch up to rich countries in terms of per capita GDP due to the power of technology transfer and the fact that poor countries can attract more capital.
B.Absolute convergence predicts that poor countries will catch up with rich countries, and this is what we observe across all countries.
C.Absolute convergence predicts that poor countries should catch up with rich countries, but not all developing countries are catching up to richer countries.
D.Conditional convergence means that poor countries will never catch up with rich countries.
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