Which of the following is consistent with the catch-up effect?
A)The United States had a higher growth rate before 1900 than after.
B)After World War II the United States had lower growth rates than war-ravaged European countries.
C)Although the United States has a relatively high level of output per person,its growth rate is rather modest compared to some countries.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The catch-up effect suggests that poorer economies will tend to grow more rapidly than wealthier ones, as they can adopt existing technologies and practices. All the options illustrate scenarios where initially less developed or war-ravaged economies grow faster than more developed ones.

Which of the Following Is Consistent with the Catch-Up Effect