In the key equation for convergence , y(0) is:
A)the initial level of output.
B)the initial level of output per worker.
C)the optimum level of output.
D)the optimum level of output per worker.

Question

In the key equation for convergence  , y(0) is:
A)the initial level of output. 
B)the initial level of output per worker. 
C)the optimum level of output. 
D)the optimum level of output per worker.

Quizplus · Accepted Answer

In the key equation for convergence, y(0) represents the initial level of output per worker. This is because the equation is used to analyze the convergence of output per worker in different economies, not the absolute level of output. Therefore, the best choice is B.

In the Key Equation for Convergence , Y(0) Is