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.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.
Explanation:
Say's Law of Markets, associated with classical economics, states that 'supply creates its own demand', implying that general overproduction is impossible.
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