According to Solow growth theory,the developing nations
A) will never be as wealthy as the already-developed nations.
B) should eventually be as wealthy as the already-developed nations.
C) will eventually be more wealthy than the already-developed nations.
D) will always grow more slowly than the already-developed nations.
E) will never converge to a steady state.

Question

Quizplus · Accepted Answer

According to Solow growth theory, the developing nations should eventually be as wealthy as the already-developed nations. This is based on the assumption that developing nations have access to the same technologies and institutions as developed nations, and can therefore achieve the same level of economic growth over time. However, this convergence process may take a long time and require significant investments in human and physical capital.

According to Solow Growth Theory,the Developing Nations