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

Leave a Reply

Your email address will not be published. Required fields are marked *