Question

What is the difference between the growth rate of the economy and the guaranteed growth rate...

What is the difference between the growth rate of the economy and the guaranteed growth rate at Harrod-Domar?

Homework Answers

Answer #2

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.

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.Suppose Zusanna's current GDP is $400 billion and that it has a savings rate of .3,...
1.Suppose Zusanna's current GDP is $400 billion and that it has a savings rate of .3, a depreciation rate is .1, and a capital to output ratio of 3. If the World Bank wants Zusanna to grow at 7% next year, and believes in the Harrod-Domar, then it should give $__________ of financial aid (to the nearest billion). 2.For the Harrod-Domar model to work it must be the case that dollars of development aid increase (consumption, savings, trade) _____,, and...
1. What is the causative relationship between economic growth and economic development? Your answer should be...
1. What is the causative relationship between economic growth and economic development? Your answer should be structured in terms of the general factors necessary for economic growth 2. Using a Lewis labor surplus framework show graphically and explain how an increase in capital-augmenting agricultural (traditional sector) technology affects a country’s ability to achieve self-sustaining growth that is driven by modern sector capital accumulation. 3.  Show graphically and explain how a country’s level of capital augmenting technology affects its output per worker...
For India as a developing country which economic growth model is perfect and How? Explain. (...
For India as a developing country which economic growth model is perfect and How? Explain. ( I am giving some model name here) Which economic model is perfect to explain Indian economy from the following : (select any one and based on that model explain the Indian economic growth) a. Rowtow's Stages of Growth b. Harrod Domar Mode c. Lewia Thoery of Development d. Newcolonial Dependence Model e. The false Paradigm Model f. O Ring model
What is the difference between microbial growth and survival?
What is the difference between microbial growth and survival?
Suppose an economy has a money growth rate of 5%, a velocity growth rate of 2%,...
Suppose an economy has a money growth rate of 5%, a velocity growth rate of 2%, and a Solow growth rate of 4%. What is the inflation rate in this economy in a long run equilibrium? 3% 5% 10% 2%
What is the difference between a slowdown in economic growth and a recession?
What is the difference between a slowdown in economic growth and a recession?
(Hybrid Harrod-Domar-Solow Model) An economy has a population of 2 million, the current capital stock of...
(Hybrid Harrod-Domar-Solow Model) An economy has a population of 2 million, the current capital stock of $6 billion, and a current GDP of $3 billion. The savings rate is a constant 8% and depreciation rate is 3%. The population growth rate is 0. Its production function is given by Yt=AtKt, where Yt denotes GDP, Kt denotes capital stock and At denotes productivity of capital in year t. Capital productivity will remain at its current level until the economy achieves a...
What is the difference between a developing country and an industrial market economy?
What is the difference between a developing country and an industrial market economy?
What is the difference between a discrete (∆N/∆t) and continous model of population growth (dN/dt)? What...
What is the difference between a discrete (∆N/∆t) and continous model of population growth (dN/dt)? What is the difference between geometric and exponential growth?
9. What is the difference between a market-capitalist economy and a command socialist economy? How do...
9. What is the difference between a market-capitalist economy and a command socialist economy? How do each of the systems in #9 differ from a command capitalist economy.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT