Question

1) Please help with the Harrod- Domar model, explain the demand side equation and the supply side of the equation of the Domar model and how the equilibrium is reached.

2) Help with the the Harrod model equations as well

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Answer 1

please find the answer Harrod and Domar model is explained how the equation varies according to demand and supply.
Ques-1) Please help Domar model and how Please help with the Harrod - Domar Model, explain the demand side equation and the supply a side of the equation of the Domar model and the equilibrium is reached? 2) Help with the Harred model equations as we bing-1) The Harrad - Domar model is a keynesian mody of development economic growth. It is used in economices to define an economy's growth rate. th termer of level of saning and productivity of capital. It also suggest that there is no nador I reason for an economy to have balanced gr- & - auth. Damar buils his model from both demand as well ar the supply side Demand Ya Ila.. This equation show that the level of national income is directly proportional to the net inue- - stment. Any increase in the level of inuestment increases the national income and vice-versa, Any increase in marginal propensity to save will decrease the level of effective demand vice-versa. Supply Yg = ok This equation explains that supply of output (Ys) at full employment depends upon tule am actory - productive capacity of capital C Q bount of real capital (R) any increase ordec rease in any of these two factory will raise or reduce the supply of output.

equilibrium the demand and supply should balance. Va = Vs toe. I la=ok. Carred's Model AI oa AI = 8 I a AI AS - τχΔΥ - ΔΥ I Ду AK AI ΔΙΧΔΥ. AS = IXAY I AIXAV = AV AS cor AIDY - ASAY 07 AI E AS