Convergence will not happen if economies around the world have:
A)different average products of capital during the transition.
B)different initial levels of labour input.
C)different optimum levels of capital per worker, k*.
D)all of the above.

Question

Quizplus · Accepted Answer

Convergence is hindered when economies have different optimum levels of capital per worker, k*, as it implies structural differences in production functions or preferences that prevent economies from reaching the same steady state.

Convergence Will Not Happen If Economies Around the World Have