If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate,
the absolute income gap between the two nations will shrink.

Question

Quizplus · Accepted Answer

While the percentage rate of growth may be the same, the starting point of the rich nation is likely much higher than that of the poor nation. Therefore, the absolute income gap may still widen or remain the same despite both nations experiencing growth.

If the Real Outputs Per Capita of a Rich Nation