(a) If capital output ratio is 3, and the saving rate is 27%. The growth rate of income =
(b) To increase the growth rate of income, what do we need to do?
(c) if you want your country to grow at 5%, and the capital output ratio is 2. The nation
should save what percentage of the nationís income =
(d) What are the criticisms to the Harrod-Domar model?
- Consider the Lewis Theory of structural change. What are the assumptions that are
considered unrealistic in this model?