According to the harrod-domar growth model

Assignment Help Business Economics

Reference no: EM131244818

According to the Harrod-Domar growth model, if you want your country to grow at 5%, and the capital output ratio is 2:

(a) The nation should save what percentage of the nation’s income =

(b) What are the problems of relying on the Harrod-Domar model to make this conclusion?

Reference no: EM131244818

Questions Cloud

Write down an expression for the monopolists profit : Suppose a monopolist faces a demand curve for its output of P = 300−Q. This means that the marginal revenue curve of the monopolist is M R = 300 − 2Q. Assume that the marginal cost of production is constant and equal to $40. Write down an expression ..

How much error is introduced by making this change : Calculate the exit temperature and τ for the PFR described in Example 9.4.2 when mole change with reaction is ignored (i.e., εB = 0). How much error is introduced by making this change?

Strategic decision making and enterprise performance : What can you learn by engaging in an environmental scan that can influence strategic decision making and enterprise performance?

Use the revenues to reduce income taxes : Suppose the government decides to impose a tax on gasoline and use the revenues to reduce income taxes in a manner such that consumers' income tax reduction equals the amount of gasoline tax paid. Using indifference curves and budget constraint analy..

According to the harrod-domar growth model : According to the Harrod-Domar growth model, if you want your country to grow at 5%, and the capital output ratio is 2: The nation should save what percentage of the nation’s income = What are the problems of relying on the Harrod-Domar model to make ..

Discusses the pros of very simple plans versus detailed plan : Write a 4 page report that discusses the pros and cons of very simple plans versus detailed plans, although the standards mandate very specific requirements for the plans that add a level of complexity.

Considering installing more efficient fluorescent lighting : UK has been considering installing more efficient fluorescent lighting in a number of buildings. The new lights are expected to save $200,000 next year. The electricity price is expected to increase by 5%/yr, what is the present worth of the electric..

How delegation can be used effectively in a team setting : Differentiate the types of authorities in an organization. Analyze how those in authority can effectively delegate responsibility authority. Explain how delegation can be used effectively in a team setting.

Describe no regret strategy in responding to climate change : Describe the ‘No Regret' strategy in responding to climate change - In the corporate case or sector you have chosen for the assignment are there any ‘No regrets' strategies available?

User Account

All Pages