The economic growth model predicts that the

A. level of per capita GDP in poor countries will decrease over time and the poor nations will not be able to catch up with the rich nations.
B. rich countries will have stagnant growth and will catch up with the poor countries, so that there will be a convergence toward a "poverty trap"
C. level of per capita GDP in rich countries will increase so fast that it will be difficult for poor countries with low income per capita to ever catch up with the rich countries
D. level of per capita GDP in poor countries will increase faster than rich countries and the poor nations will catch up with the rich nations


Ans: D. level of per capita GDP in poor countries will increase faster than rich countries and the poor nations will catch up with the rich nations

Economics

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