If two countries have the same steady-state levels of output,the country that is _____ today will _____ in per capita output.
A) poorer;always lag behind
B) poorer;catch up
C) richer;eventually fall behind
D) richer;become even further ahead

Question

Quizplus · Accepted Answer

If two countries have the same steady-state levels of output, the poorer country is expected to grow faster due to the catch-up effect, allowing it to catch up in per capita output.

If Two Countries Have the Same Steady-State Levels of Output,the