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

Question

Quizplus · Accepted Answer

The convergence hypothesis suggests that countries with lower GDP per capita tend to grow faster than those with higher GDP per capita, leading to a narrowing of the gap over time. Therefore, option A is true.

According to the Convergence Hypothesis, Differences in GDP Per Capita