Suppose the GDP growth rate is 8% and the rate of saving in the economy is 40%. The incremental capital output ratio (ICOR) is ________.
1 markEconomics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Harrod-Domar modelModerateabout 2 min
IIT JAM 2025 Question 44: 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 IIT JAM 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.