Harrod Domar Model :
growth rate of Output = savings rate / capital - output ratio
g = s/v
= .1/5
= .02
= 2%
Question 3 2 pts Suppose the growth of production in Country A follows Harrod-Domar Model.Country A...
Suppose the growth of production in Country A follows Harrod-Domar Model. Country A has 100 people(labors) in Year 1. The capital K in Year 1 is 60. The incremental capital-output ratio v = 5 and the constant savings rate s = 0.1. There is no depreciation in capital. What is the growth rate of aggregate productions in Year 1?
Suppose the growth of production in Country A follows Harrod-Domar Model. Country A has 100 people(labors) in Year 1. The capital K in Year 1 is 60. The incremental capital-output ratio v = 5 and the constant savings rate s = 0.1. For Country A, what is the production per capita in Year 1?
suppose the growth rate of production in country A follows Harrod-Domar Model.The capital K in country A is 60 in year 1.The incremental capital-output ratio v= 5 and the constant savings rates s=0.1. For country A,What is the amount of aggregate production in year 1?
in the harood domar model in the harrod domar model ,if a countrygdp is constant at the smae time its saving rate is 30% and depreciation rate is 10% what muat be incremental cpaital outpur ratio according to Maddison betwwen year 1 amd 1000BC world gdp percapita grew at an annual average rate of
Suppose the growth of production in country B follows solow Model.country B's production function is Y=F(k,L)=K^0.5 L^0.5. Country B has 100 prople(labors) and 64 units of capital K in year 1.The population growth rate n=0.21 and the saving rate s=0.1.There is no depreciation in capital K. For country B,what is the production per capita in Year 2?
Problem Set on Growth and the Solow Model KIN 1. Suppose that the production function for Serbia is given by Y (a) If you double the amount of capital and double the amount of labor available, does output always double? Show mathematically (b) Rewrite the production function in intensive form. (c) Suppose the savings rate is r and the depreciation rate is m. Derive an expression for the steady state capital per worker and the steady state output per worker....
3.) There are two countries, Anihc (country A) and Bapan (country B), with the same production function . However, country A has saving rates of 0.2, depreciation rate of 0.2 and population growth of 0.2; while country B has saving rates of 0.1, depreciation rate of 0.15 and population growth of 0.05. Using the Solow model: a.) Find the steady state capital-labor ratio for each country. b.) Find the steady state output per worker, and the steady state consumption per...
3 Technological Growth Suppose that production is given by Y = K (AN) The savings rate is s = 0.16 and the rate of depreciation is 8 = 0.1. Suppose further that the number of workers grows at 2% per year and that the rate of technological progress is 4% per year. 1. Find the steady-state values of the the following variables: capital per effective worker, output per effective worker, the growth rate of output per effective worker, the growth...
Consider the Harrod-Domar model of economic growth. Assume that the capital-output ratio is 3. (a) [5 Points] If the saving rate is 15 percent, what is the economic growth rate? (b) [5 Points] Suppose a country wants to grow at a rate of 15 percent. What is the gap in saving rate and how a developing country can expect to fill it? GNI per GNI per 14.7 The following table provides data on various development indicators for selected developing countries....
1/ Which of the following changes would cause a country to have permanently higher output per worker? a. A higher savings rate. b. A higher population growth rate. c. A war that lowers its population by one-half. d. None of the above. 2/ The Harrod-Domar model predicts that investment will lead to permanently higher growth of income per capita. What property does it fail to account for? a. Capital depreciates. b. Production of new capital requires saving and investment today....