Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Name: Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.
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Quizplus · Accepted Answer

This statement aligns with the convergence theory in economics, which suggests that poorer economies will tend to grow at faster rates than wealthier ones and thus catch up over time, assuming similar savings rates, population growth, and technologies.

Assuming Constant Returns to Scale, If Two Countries Are Otherwise