According to the Harrod-Domar growth model,an economy with a capital-output ratio of four that saves and invests 12 percent of its GDP will grow annually at a rate of ________ percent.

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The Harrod-Domar growth model suggests that the growth rate of an economy (g) is equal to the savings rate (s) divided by the capital-output ratio (k). Given a capital-output ratio of 4 and a savings rate of 12%, the growth rate would be 12% / 4 = 3%.

According to the Harrod-Domar Growth Model,an Economy with a Capital-Output