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1. |
If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ? |
A. | one country will always have 2 percent more real GDP/person than the other |
B. | the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth |
C. | the standard of living in the two countries will converge |
D. | Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent |
Answer» C. the standard of living in the two countries will converge | |