For an economy consumption-income ratio is given to be 0.72. The incremental capital-Output ratio is 4. Given that the population is growing at 3% p.a. what will be the growth rate of per capita income?
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1 mark, −0.33Economics of Growth and DevelopmentHarrod–Domar and Solow growth modelsThe Harrod-Domar modelModerateabout 2 min
UoH 2011 Question 40: 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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