The notion of conditional convergence states that two countries that have the same population growth and access to the same level of technology will reach a steady-state equilibrium at
A)different levels of output but the same growth rate, if their savings rates are different
B)different levels of output and different economic growth rates if their savings rates are different
C)the same level of output and the same economic growth rate, even if their savings rates are different
D)the same level of output but different economic growth rates if their savings rates are different
E)the same level of output and the same economic growth rate if their savings rates are the same but their rates of depreciation differ

Question

Quizplus · Accepted Answer

Conditional convergence suggests that economies with the same population growth and technological levels will converge to the same growth rate but can have different levels of output due to differences in savings rates.

The Notion of Conditional Convergence States That Two Countries That