Which of the following is consistent with the catch-up effect?
A)The United States had a lower growth rate before 1900 than after.
B)Japan has a higher growth rate than Germany.
C)Although Canada has a relatively high level of output per person, its growth rate is still high compared to some poorer countries, such as Pakistan.
D)After World War II, Canada had lower growth rates than war-ravaged European countries.

Question

Quizplus · Accepted Answer

The catch-up effect suggests that poorer economies tend to grow faster than richer ones, so war-ravaged European countries grew faster than Canada after WWII.

Which of the Following Is Consistent with the Catch-Up Effect