3. One
- One of the basic principles of classical growth theory is thatover time, levels of economic activity should converge in mostcountries and that we would enjoy equal levels of prosperity. Whilewe view some evidence of convergence, we also observe thecontinuation of stark and deep levels of global inequality
- In one small paragraph, use our production function analysis toexplain why we might predict economic convergence.
- In an additional paragraph, use our production functionanalysis to explain why we might not be experiencingconvergence.
- What country are you a citizen of (UNITED STATES)? Use thegrowth theory you have used in your previous answer to explainwhether you are part of a country that is either:
1. Catching up to advanced capitalistcountries,
2. Being caught up to by more rapidlygrowing countries, or
3. Still experiencing a big gap inliving standards with no immediate prospects of catching up.
Briefly explain why the country youare a citizen of falls into the category you have chosen.
