Question 25 (1 pnint) If the catch-up effect is universal, i.e. the poorer countries grow faster. Given enough time, what would happen to the international income differences? The catch-up effect does not do anything to the international income differences. O They would remain the same because income in both the rich and poor countries would grow over time. They would increase because the rich countries would continue to get richer. They would disappear.

Question 25 (1 pnint) If the catch-up effect is universal, i.e. the poorer countries grow faster. Given enough time, what would happen to the international income differences? The catch-up effect does not do anything to the international income differences. O They would remain the same because income in both the rich and poor countries would grow over time. They would increase because the rich countries would continue to get richer. They would disappear.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 32P: In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million....

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