If a nation with a low level of GDP per capita converges to a richer nation, the poor nation
A) enters into a free trade agreement with the richer nation.
B) experiences low growth rates.
C) experiences a rate of high growth such that its GDP per capita increases to that of the richer nation.
D) experiences a rate of low growth such that its GDP per capita increases to that of the richer nation.
C
You might also like to view...
If a country has absolute advantage in the production of all goods, then it will have no incentive to trade
Indicate whether the statement is true or false
Exhibit 6-2 Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 2?
a. 200 million b. 50 million c. 75 million d. 175 million e. 100 million
A European recession that reduces U.S. net exports by $50 billion may ultimately lead to a $_____ billion reduction in aggregate demand if the MPC is 0.75
Fill in the blank(s) with correct word
Which of the following is correct according to the long-run Phillips curve?
a. No government policy, including changes in the money supply growth rate, can change the natural rate of unemployment. b. Changes in the money supply growth rate are the only means by which government policy can change the natural rate of unemployment. c. Monetary policy cannot change the natural rate of unemployment, but other government policies can. d. Monetary policy and other government policies can shift the long-run Phillips curve.