Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?
A) The other countries catch up to the rich one.
B) The rich country grows the fastest.
C) The rich country becomes poorer than the others.
D) Nothing.
Correct Answer:
Verified
Q9: When countries converge,
A) they all grow at
Q10: In the endogenous growth model,workers divide their
Q11: Which of the following is not a
Q12: Human capital is
A) knowledge found in books.
B)
Q13: Income per worker has been
A) converging in
Q15: In the Solow growth model,countries with identical
Q16: Convergence means that
A) if poor countries grow
Q17: Suppose a poor economy inches towards the
Q18: What characteristic do both human and physical
Q19: The importance of barriers to the adoption
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents