According to the convergence hypothesis, differences in real GDP per capita among countries tends to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

Question

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This is because countries with lower GDP per capita often have more room for growth and can adopt technologies and institutions from more developed countries, allowing them to catch up and achieve higher growth rates. Meanwhile, countries with higher starting GDP per capita may already be closer to their maximum potential and may experience diminishing returns to growth.

According to the Convergence Hypothesis, Differences in Real GDP Per