If Canada and Bolivia have annual per capita growth rates of 3.2% and 1.35%, respectively, and if Canada's per capita GDP is higher, then in the long run
A)real GDP per capita in Canada will always be 1.9% higher than real GDP per capital in Bolivia.
B)the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia will shrink over time.
C)the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia will increase over time.
D)the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia will always be $1.9 trillion.

Question

Quizplus · Accepted Answer

The difference in growth rates means that Canada's per capita GDP, already higher, will grow at a faster rate than Bolivia's, leading to an increasing gap over time.

If Canada and Bolivia Have Annual Per Capita Growth Rates