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What is a converging economy?
Match each description with the proper term. Consumer price index (CPI) Producer price index (PPI) Personal consumption expen
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Answer #1

As per HOMEWORKLIB POLICY and guideline the 1st unrelated-question is answered below:

Convergence:

This is an economic theory and practically proved that poorer (developing) countries grow faster in terms of per capital income (= GDP / Population) compare to developed countries. Although the start of developing countries is very low at time but it will meet the developed countries in future, called convergence. This happens because the developing countries have very little law of diminishing return (especially capital) effect compare to developed countries.

Example: suppose “A” is a developed country, having per capital income of $45,000. A developing country having per capital income of $12,000 today starts economic activity and reaches to $48,000 after few years quickly. Since years go on, the developed country also has $48,000 per capita income then. Two economies meet at $48,000 per capital income as they converge.

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