When converging economies:
A)have the same growth rate of capital per worker.
B)the same steady state capital per worker, k*.
C)have the same growth rate of output per worker.
D)all of the above.

Question

Quizplus · Accepted Answer

Converging economies tend to have the same steady-state capital per worker, k*. This is because as less wealthy economies continue to grow, they experience diminishing returns to capital and eventually catch up to wealthier economies with higher levels of capital. However, they will not necessarily have the same growth rates of output or capital per worker.

When Converging Economies