If a nation with a low level of GDP per capita converges to a richer nation, the poor nation

Question

Quizplus · Accepted Answer

When a poor nation converges to a richer nation, it experiences a high rate of growth. This means that its GDP per capita increases at a faster rate compared to the richer nation, eventually reaching or converging to the richer nation's level of GDP per capita. This process is known as conditional convergence, and it occurs because poorer nations have more room to grow due to the potential for adopting advanced technologies and increasing productivity. Therefore, the correct choice is C.

If a Nation with a Low Level of GDP Per