If two countries have the same steady-state levels of output, the country that is ______ today will eventually ______ in per capita output.
A) poorer; lag behind
B) poorer; catch up
C) richer; fall behind
D) richer; be further ahead

Question

Quizplus · Accepted Answer

In the context of economic growth models, if two countries have the same steady-state levels of output, the poorer country will grow faster due to the convergence hypothesis, eventually catching up in per capita output.

If Two Countries Have the Same Steady-State Levels of Output