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Calculate the implied rate of growth of total gnp

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Reference no: EM132166601

Suppose that the country of Lessdeveloped has a gross saving rate of 20%, a depreciation rate of 3%, and an incremental capital-output ratio (ICOR) of 2.5. Remember that X % = X/100

a. Using the Harrod-Domar growth model, calculate the implied rate of growth of total GNP in Less developed.

Reference no: EM132166601

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