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Questions › CUET-PG › CUET-PG 2023 Shift 1 › Q66
4 marks, −1Economics of Growth and Development › Harrod–Domar and Solow growth models › The Solow model and its steady stateModerateabout 1 min

CUET-PG 2023 Shift 1 Question 66: Harrod–Domar and Solow growth models

For the per capita production function y=k0.5y = k^{0.5}y=k0.5; what is the level of capital per capita at steady state assuming depreciation (δ)=0.1(\delta) = 0.1(δ)=0.1 and rate of saving = 0.4? The rate of growth of population is assumed as 0.

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For the per capita production function y = k⁰·⁵; what is the level of capital per capita at steady state assuming depreciation (δ) = 0.1 and rate of saving = 0.4? The rate of growth of population is assumed as 0. (A) 4 (B) 2 (C) 16 (D) √2

Also written as: For the per capita production function y = k^(0.5); what is the level of capital per capita at steady state assuming depreciation (delta) = 0.1 and rate of saving = 0.4? The rate of growth of population is assumed as 0.

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.

  • IIT JAM 2022 · Q14An economy follows the Solow model with production function y = √k, where y is output per worker and k is…
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Question from the CUET-PG 2023 Shift 1 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.