The average rate of growth of U.S. real GDP is approximately 3%, as measured over long periods of time. China has been averaging growth rates that are considerably higher than this for much of the past two decades, while some sub-Saharan African countries have experienced growth rates that are considerably lower than 3% or even negative.
a. What is happening to the difference in the level of income between the United States and China?
b. What is happening to the difference in the level of income between the United States and these African countries?
c. In general, for countries to “catch up” to higher income countries, what must happen in terms of growth rates?