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Author Question: In the Harrod-Domar growth model, if 12.5 of income is saved, the incremental capital output ratio ... (Read 136 times)

rl

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on: Jun 30, 2018
In the Harrod-Domar growth model, if 12.5 of income is saved, the incremental capital output ratio is 2.5 and the rate of depreciation is 4, what is the implied rate of growth?
 
  What will be an ideal response?

Question 2

Macroeconomic stabilization involves
 
  (a) reduction of inflation.
  (b) reduction of government budget deficits.
  (c) reduction of trade deficits.
  (d) all of the above.
  (e) none of the above.


Swizqar

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Reply #1 on: Jun 30, 2018
Answer to Question 1

1

Answer to Question 2

D


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