A nation's growth rate will most likely ________ as it converges to a new,higher balanced growth path.

Question

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As a nation converges to a new, higher balanced growth path, it will most likely experience a slowdown in its growth rate. This is because the factors driving the initial high growth rate, such as labor force expansion and technological catch-up, will gradually diminish in their impact. The economy will then reach a new equilibrium at a higher level of income per capita, but with a lower growth rate.

A Nation's Growth Rate Will Most Likely ________ as It