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How is Harrod-Domar model used in planning?
The Harrod-Domar model is helpful to government for setting target rates for saving required to deliver a specified rate of economic growth.As like an example as suppose k = 4 and target rate of growth is four percent. What is the essential savings ratio? 6 = s/4 which is 16percent.
When the current savings ratio is as around 4 percent in that case cet par, growth will be only one percent, therefore the savings gap to acquire the target 4 percent growth rate is 12 percent.
explain why each of the following factors influence the own price elasticity of demand for a comodity 1. Consumer preferences 2. the narrowness of definiton of the commodity
what is price expectation elasticity of demand?
What are the disadvantages of a informal economy?
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