If the population growth rate is 2%,the incremental capital output ratio is 3,the saving ratio is 24%,and the depreciation rate is 5%,the rate of growth of income is

Question

Quizplus · Accepted Answer

The rate of growth of income can be calculated using the Harrod-Domar model, which is given by the formula: growth rate = (saving ratio) / (capital-output ratio) - depreciation rate. Plugging in the given values: growth rate = (24%) / (3) - (5%) = 8% - 5% = 3%.

If the Population Growth Rate Is 2%,the Incremental Capital Output