Which of the following are the three concepts of growth in the Harrod-Domar model ?
The three growth concepts are actual growth, warranted growth and the natural rate of growth. Actual growth is realised output growth; warranted growth is the rate…
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Which of the following are the three concepts of growth in the Harrod-Domar model ?
Answer and explanation
Correct answer A
The three growth concepts are actual growth, warranted growth and the natural rate of growth. Actual growth is realised output growth; warranted growth is the rate consistent with firms being satisfied with their investment decisions. Natural growth reflects the expansion permitted by labour-force growth and technical progress.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)