The economy of INDUS grows at 6% per annum and its investment ratio is 31.2%. What is the capital output ratio of this economy, by the assumptions of the Harrod-Domar model?
Tap an option to check your answer.
4 marks, −1Economics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Harrod-Domar modelModerateabout 1 min
CUET-PG 2023 Shift 1 Question 74: 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 Harrod-Domar model, part of Harrod–Domar and Solow growth models in Economics of Growth and Development.
Growth driven by saving and the capital-output ratio, and why it is knife-edge.
TestStop has 27 past-paper questions on this subtopic.
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 2023 Shift 1 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.