Consider a country whose savings rate is 30 percent, the capital-output ratio is 3, population growth rate is 1% and d

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Consider a country whose savings rate is 30 percent, the capital-output ratio is 3,

population growth rate is 1% and depreciation is zero. Due to frequent power

outage, a quarter of the existing capital stock goes unused every year. Using the

Harrod-Domar model, the growth rate of per capita output will be

a. 7.5 per cent

b. 6.5 per cent

c. 9 per cent

d. 12.33 per cent

Consider A Country Whose Savings Rate Is 30 Percent The Capital Output Ratio Is 3 Population Growth Rate Is 1 And D 1 (24.7 KiB) Viewed 17 times

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5. Consider a country whose savings rate is 30 percent, the capital-output ratio is 3, population growth rate is 1% and depreciation is zero. Due to frequent power outage, a quarter of the existing capital stock goes unused every year. Using the Harrod-Domar model, the growth rate of per capita output will be a. 7.5 per cent b. 6.5 per cent c. 9 per cent d. e. 12.33 per cent