If the saving propensity is 14% and the incremental capital output ratio is 4, and the population rate of growth is 3%, there is constant returns to scale and no technical progress
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1 mark, −0.5Economics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Harrod-Domar modelModerateabout 2 min
JNU SSS 2010 Question 77: Harrod–Domar and Solow growth models
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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.
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