Conditional convergence refers to the condition that among countries with similar steady states:
A) a country with a higher output level tends to grow more rapidly.
B) a country with a higher output level tends to grow more slowly.
C) all countries grow at the same rate regardless of their initial output levels.
D) whether one country's output converges to that of another country depends on their geographical proximity.

Question

Quizplus · Accepted Answer

Conditional convergence suggests that among countries with similar long-term economic conditions or steady states, those with lower initial levels of output (or income) will tend to grow faster than those with higher initial levels, as they catch up or converge to similar levels of output over time.

Conditional Convergence Refers to the Condition That Among Countries with Similar