Explanation:
Wagner's Law posits that as an economy develops, the share of public expenditure in national income tends to rise due to increased demand for public goods and social services.
In the context of growth empirics, 'Conditional Convergence' means that:
A.Countries converge to their own steady-state levels of income, which may differ because of differences in saving rates, population growth and technology
B.Only absolute convergence is observed
C.There is no convergence of any kind
D.All countries converge to the same income level regardless of fundamentals
Explanation:
Conditional convergence is the prediction that countries converge to their own steady states determined by their particular saving rates, population growth rates and levels of technology; poorer countries grow faster only after controlling for these differences.
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