Harrod-Domar Model.pptx - Harrod-Domar Model u2022...

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Harrod-Domar Model Introduction. Assumptions. The model. Limitations .
Must Know Terms Capital Accumulation refers to an increase in assets from investments or profits and is one of the building blocks of a capitalist economy. Capital output ratio is the amount of capital needed to produce one unit of output. Growth rate is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period. Saving ratio is the proportion of national income that is saved. The marginal efficiency of capital this refers to the productivity of investment.
Introduction Ever since the end of Second World War, interest in the problems of economic growth has led economists to formulate growth models of different types. The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and productivity of capital. The Harrod Domar Growth model is a growth model and not a growth strategy ! A model helps to explain how growth has occurred and how it may occur again in the future. Growth strategies are the things a government might introduce to replicate the outcome suggested by the model
Continue The Harrod-Domar model was designed by Sir Roy Harrod in 1939 and Evsey Domar in 1946 . It is a growth model that primarily exhibits that the rate of economic growth in an economy is influenced by the extent of saving and the capital output ratio.

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