Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?
A)The growth model predicts that poor countries should catch up with rich countries, but developing countries are not catching up to lower-income industrialized countries as a group.
B)The growth model predicts that poor countries will never catch up with rich countries, but lower-income industrialized countries are catching up to higher-income industrialized countries as a group.
C)The growth model predicts that poor countries will catch up with rich countries, but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group.
D)The growth model predicts that poor countries will catch up with rich countries, and this is what we observe across all developmental categories of countries.
E)The growth model predicts that rich countries will experience ever faster economic growth and this is what we observe among higher-income industrialized countries.

Question

Quizplus · Accepted Answer

The economic growth model predicts that poor countries should catch up with rich countries, but in reality, developing countries are not catching up to lower-income industrialized countries as a group. This is due to various factors such as unequal distribution of resources, political instability, and insufficient investment in education and infrastructure.

Which of the Following Is a True Statement Regarding the Economic