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Questions › JNU › JNU SIS 2011 › Q18
4 marks, −1Economics of Growth and Development › Harrod–Domar and Solow growth models › The Solow model and its steady stateEasyabout 2 min

JNU SIS 2011 Question 18: Harrod–Domar and Solow growth models

Consider the basic Solow model for this question. Suppose two countries AAA and BBB are identical in all aspects except that AAA's saving rate is lower than BBB's. In the long run

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Consider the basic Solow model for this question. Suppose two countries A and B are identical in all aspects except that A 's saving rate is lower than B 's. In the long run (A) income per person will be higher in A than in B (B) income per person will be lower in A than in B (C) income per person will be the same in both A and B (D) It is not possible to compare income per person in the two countries based on the saving rates

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…
Practise Harrod–Domar and Solow growth modelsMore on The Solow model and its steady state

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Question from the JNU SIS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.