Figure 7.5 Alt text for Figure 7.5: In figure 7.5, a graph depicting the "catch-up line."
Long description for Figure 7.5: The x-axis is labelled, initial level of real GDP per capita.The y-axis is labelled, growth in real GDP per capita.A line slopes down from the top left corner to the end of the x-axis.2 points, A and B, are plotted on this line such that point A is on the top part of the line, and point B is on the bottom part of the line.
-Refer to Figure 7.5.Based on the "catch-up line" drawn above, poorer countries are more likely to be at a point like ________, where growth in GDP is relatively ________, while richer countries are more likely to be at a point like ________, where growth in GDP is relatively ________.
A)A; low; B; high
B)A; high; B; low
C)B; low; A; high
D)B; high; A; low
E)A; high; B; high

Question

Figure 7.5  Alt text for Figure 7.5: In figure 7.5, a graph depicting the "catch-up line."
Long description for Figure 7.5: The x-axis is labelled, initial level of real GDP per capita.The y-axis is labelled, growth in real GDP per capita.A line slopes down from the top left corner to the end of the x-axis.2 points, A and B, are plotted on this line such that point A is on the top part of the line, and point B is on the bottom part of the line.
-Refer to Figure 7.5.Based on the "catch-up line" drawn above, poorer countries are more likely to be at a point like ________, where growth in GDP is relatively ________, while richer countries are more likely to be at a point like ________, where growth in GDP is relatively ________.
A)A; low; B; high 
B)A; high; B; low 
C)B; low; A; high 
D)B; high; A; low 
E)A; high; B; high

Quizplus · Accepted Answer

The "catch-up line" suggests that poorer countries (point A) have higher potential growth rates as they catch up with richer economies, while richer countries (point B) experience relatively lower growth rates due to already having achieved higher levels of GDP.

Figure 75 Alt Text for Figure 7