The Harrod-Domar growth model
A) expresses the growth rate of GDP as a function of the proportion of GDP saved, divided by the capital-output ratio.
B) indicates that full-employment GDP will grow faster as the capital-output ratio in the economy rises.
C) requires the capital-output ratio to grow if the economy is to increase to its full-employment GDP.
D) expresses the rate of growth of GDP as an inverse function of the savings rate.
E) indicates that full-employment GDP will grow only if the savings rate declines while the capital-output ratio increases.
Correct Answer:
Verified
Q50: Which of the following is the best
Q51: The major determinant of the rapidity with
Q52: Innovation is
A) the application of a new
Q53: Educational expenditures may be viewed as an
Q54: _ stressed the importance of innovation in
Q56: If the capital-output ratio is three,the full-employment
Q57: The actual rate of growth of GDP
Q58: Investment in education enhances the rate of
Q59: Intended investment in a given year
A) leads
Q60: The rate of economic growth and the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents