The Harrod-Domar model predicts that if the saving rate is 20% and the capital output ratio is a constant equal to 5, then the economy will grow at a rate of:
A) 2%
B) 5%
C) 10%
D) 20%
E) None of the above.
Correct Answer:
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Q12: The Harrod-Domar model starts with the following
Q13: The Harrod-Domar growth model has lost favor
Q14: The Harrod-Domar model tells us that:
A) the
Q15: The term γ in the Harrod-Domar model
Q16: The Harrod-Domar model predicts that if the
Q18: In the Solow model, the transition from
Q19: In the steady state, the growth rates
Q20: The Solow model specifies that individual welfare
Q21: The Solow model predicts that, ceteris paribus,
Q22: Labor-augmenting technological progress, denoted as E in
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