In the Solow growth model, the assumption of constant returns to scale means that
Tap an option to check your answer.
4 marks, −1Economics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Solow model and its steady stateModerateabout 1 min
CUET-PG 2020 Question 59: Harrod–Domar and Solow growth models
Answer and worked solution
Checking your account…
Harrod–Domar and Solow growth models has come up 113 times in 7 exams since 2006.
What this question tests
This question is on The Solow model and its steady state, part of Harrod–Domar and Solow growth models in Economics of Growth and Development.
Growth with substitutable factors: capital per worker settles where saving covers depreciation and dilution.
TestStop has 38 past-paper questions on this subtopic; the nearest in year are below.
Similar questions from other papers
- Match the LIST-I with LIST-II. List I A. Harrod-Domer Model B. Solow Model C. Golden rule of capital stock D. Steady state. List II I. g=s/v II. MRK = ∂ III. k…
- Consider a Solow growth model with the production function Yₜ=Kₜ^α Nₜ^(1-α); 0<α<1; where, Yₜ is aggregate output at time t; Kₜ is aggregate capital stock at time t; Nₜ…
- For a closed economy: Sₜ=aYₜ and Iₜ=g(Yₜ-Yₜ₋₁), where Sₜ, Yₜ and Iₜ are savings, income and investment in period t, and a and g are positive constants. For Y₀=100…
- Which of the following assumption is NOT similar in Harrod and Domar Model?
- Which of the following is not correct about the steady state equilibrium for the economy according to neoclassical growth theory?
Question from the CUET-PG 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.