Question: Question 2 (20 marks). For this question, use the data you obtained from the World Development Indicators (World Bank) for assignment 1 to see if

Question 2 (20 marks). For this question, use the data you obtained from the World Development Indicators (World Bank) for assignment 1 to see if convergence hypothesis among the world regions or income groups holds.

a.What does convergence mean in the neoclassical growth model?

b.Calculate the average GDP per capita growth for the world regions for the period 1990-2018.Plot a scatter diagram showing the GDP per capita in 1990 on the horizontal axis and the average GDP per capita growth on the vertical axis. Does the graph support convergence? Explain.

c.Redo (b) for the four income groups. Does the graph support convergence? Explain.

The World Development Indicators (WDI) database can be accessed through the University library's website or directly from here: http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators.

Regions: East Asia & Pacific, South Asia, Europe & Central Asia, Latin America & Caribbean, North America, Sub-Saharan Africa, Middle East & North Africa.

Income groups: Low, lower middle, upper middle, high

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