Among countries with similar steady-state levels of output,the tendency for poorer countries to grow faster than richer countries is called:
A) Solow growth.
B) steady-state growth.
C) dynamic growth.
D) conditional convergence.

Question

Quizplus · Accepted Answer

Conditional convergence is the tendency for economies with similar steady-state levels of output to converge over time, with poorer countries growing faster than richer ones until they catch up. This is due to the diminishing returns of capital, meaning that as capital accumulation increases, the marginal benefit of each additional unit of capital decreases, leading to slower growth rates in the long run.

Among Countries with Similar Steady-State Levels of Output,the Tendency for Poorer