Harrod asked a number of fundamental questions for the understanding of the growth performance of any country, be it developed or underdeveloped, namely: if changes in income induce investment, what must be the rate of growth of income for plans to invest to equal plans to save in order to ensure a moving equilibrium in a growing economy through time? In static Keynesian theory, if growth equilibrium is disturbed, will it be self-correcting or self-aggravating? And will this equilibrium rate be equal to the maximum rate of growth that the economy is able to sustain given the rate of growth of productive capacity? Analyse the various ways in which Harrod considered these questions?

/in /by

Harrod asked a number of fundamental questions for the understanding of the
growth performance of any country, be it developed or underdeveloped, namely: if
changes in income induce investment, what must be the rate of growth of income for
plans to invest to equal plans to save in order to ensure a moving equilibrium in a
growing economy through time? In static Keynesian theory, if growth equilibrium is
disturbed, will it be self-correcting or self-aggravating? And will this equilibrium
rate be equal to the maximum rate of growth that the economy is able to sustain
given the rate of growth of productive capacity? Analyse the various ways in which
Harrod considered these questions?

You might also like
What are the advantages and disadvantages of a Monopoly?
With a practical example describe the relationship between the following terms as used in resource allocation-Pareto efficiency, Pareto inefficiency, Pareto improvement.
in a perfect competition, the cost function of each of 100 firms is given as . C = Q^3\300 + 0.2Q^2+4Q+10 . the market demand function is given by Q= 8000-200P
How does market conduct elements influence in market performance
Given the Utility Function is U = X 0.7Y 0.3 and Budget is taka 300. The original price was (Px, Py) = (2, 2) and the new price is (Px’, Py) = (4, 2). (a) Draw an angle curve for X by using the above information [Labelling is must] [5] (b) Calculate the value of Compensation variation (CV) and Equivalent variation (EV)? [10] [Hint: Use the knowledge of chapter 5 and 6 to get the solutions for ordinary demand curve]
The Cobb-Douglas production function is given by f(x1, x2) = Ax1ax2b. It turns out that the type of returns to scale of this function will depend on the magnitude of a + b. Which values of a + b will be associated with the three different kinds of returns to scale? Demonstrate with illustrations.
The next coupon date that follows the settlement date of a bond is 28 October 2021. The half-yearly coupon rate is 7,375%. The accrued interest equals R5,49589%. If this is a cum interest case, the settlement date for this bond is [1] 11 September 2021. [2] 14 June 2021. [3] 30 July 2021. [4] 29 August 2021. [5] none of the above.
If the prices of both goods increase by the same percent, the budget line will (A) shift parallel to the left. (B) shift parallel to the right. (C) pivot about the x axis. (D) pivot about the y axis.