In an economy real GDP has increased from 1080 PPP during 2015 to 2020. The incremental capital output ratio is 2.5. The rate of investment is:
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2 marksEconomics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Harrod-Domar modelModerateabout 1 min
UGC-NET 2023 Question 10: Harrod–Domar and Solow growth models
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In an economy real GDP has increased from 990 PPP to 1080 PPP during 2015 to 2020. The incremental capital output ratio is 2.5. The rate of investment is: (A) 27.8 Percent (B) 22.5 Percent (C) 3.9 Percent (D) 19.5 Percent
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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