The convergence prediction from the Solow model predicts that Group of answer choices All of these...

The convergence prediction from the Solow model predicts that

Group of answer choices

All of these answers are true

LDCs should catch up to DCs

LDCs should grow faster than DCs.

LDCs and DCs should reach the same point

Solutions

Expert Solution

The answer with explanations of the multiple choice question asked above is : (All Of These Answers Are True) because their is an suggestion in salow model that poor countries should grow faster and eventually catch up to richer countries. Solow model predicts that in the long run economies converge to their steady state equilibrium and that permanent growth is achievable only through technological progress. Which means LDCs should catch up with DCs and LDCs should grow faster than DCs as well as LDCs and DCs should reach the same point. Therefore All the option is true .

Rahul Sunny answered 1 year ago

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