Conditional convergence occurs when economies converge to:
A) the same steady state as other economies.
B) the Golden Rule steady state.
C) the balanced-growth steady state.
D) their own, individual steady states.

Question

Quizplus · Accepted Answer

Conditional convergence refers to the concept that economies with similar savings rates, population growth rates, and production functions will converge to their own unique steady states, rather than a universal one. This is because these factors, which can vary significantly between economies, determine the specific steady state each economy is heading towards.

Conditional Convergence Occurs When Economies Converge To