In the Harrod-Domar equation of warranted rate of growth, i.e., ḡ=(s/y)/(1/k), the capital-output…
The formula ḡ=(s/y)/(1/k) expresses warranted growth as saving-income ratio divided by capital-output ratio. Thus 1/k is capital-output ratio; ḡ growth, s/y saving ratio…
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In the Harrod-Domar equation of warranted rate of growth, i.e., ḡ=(s/y)/(1/k), the capital-output ratio is represented by
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Correct answer B
The formula ḡ=(s/y)/(1/k) expresses warranted growth as saving-income ratio divided by capital-output ratio. Thus 1/k is capital-output ratio; ḡ growth, s/y saving ratio and y/s its reciprocal. Source notation retained.
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UGC NET Economics