Question: Answer clearly Consider a country whose savings rate is 30 percent, the capital-output ratio is 3, population growth rate is 1% and depreciation is zero.
Answer clearly
Consider a country whose savings rate is 30 percent, the capital-output ratio is 3, population growth rate is 1% and depreciation is zero. Due to frequent power outage, a quarter of the existing capital stock goes unused every year. Using the Harrod-Domar model, the growth rate of per capita output will be a. 7.5 per cent b. 6.5 per cent c. 9 per cent d. 12.33 per cent
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