Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2015 › Q55
2 marks, −0.666666666666667Economics of Growth and Development › Harrod–Domar and Solow growth models › Growth models with labour markets and class savingsModerateabout 3 min

DSE 2015 Question 55: Harrod–Domar and Solow growth models

In the same class-savings Solow model, now with sr=0s_r=0sr​=0 and 0<sw<10<s_w<10<sw​<1, an increase in the labour-force growth rate nnn

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

In the same class-savings Solow model, now with sᵣ=0 and 0<s_w<1, an increase in the labour-force growth rate n (A) unambiguously increases the long-run steady-state capital-labour ratio (B) unambiguously decreases it (C) increases it if α>n (D) leaves it unchanged

Also written as: In the same class-savings Solow model, now with s_r=0 and 0<s_w<1, an increase in the labour-force growth rate n

Harrod–Domar and Solow growth models has come up 113 times in 7 exams since 2006.

What this question tests

This question is on Growth models with labour markets and class savings, part of Harrod–Domar and Solow growth models in Economics of Growth and Development.

Extensions that add a labour market or let different groups save at different rates.

TestStop has 17 past-paper questions on this subtopic.

Practise Harrod–Domar and Solow growth modelsMore on Growth models with labour markets and class savings

Similar questions from other papers

  • CUET-PG 2026 · Q69Match 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…
  • GATE 2026 · Q50Consider 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…
  • IIT JAM 2026 · Q57For 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…
  • UGC-NET 2026 · Q3Which of the following assumption is NOT similar in Harrod and Domar Model?
  • CUET-PG 2025 · Q17Which of the following is not correct about the steady state equilibrium for the economy according to neoclassical growth theory?

Question from the DSE 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.