What is the difference between the growth rate of the economy and the guaranteed growth rate at Harrod-Domar?
The growth rate of the economy is the percentage change in the value of all goods and services produced n an economy during a particluar period of time in comparison to the previous period of time.The growth rate measures the change in a nation's GDP.Within the Harrod Domar model , it is possible to have a steady growth.The growth rate 0/x is called the warranted rate of growth.This result is obtained with the assumption of a constant marginal propensity to save and a constant capital output ratio.
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