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    Question

    In the Harrod-Domar growth model, economic growth is

    determined by:
    A Labor and capital only Correct Answer Incorrect Answer
    B Savings and capital-output ratio Correct Answer Incorrect Answer
    C Technological progress only Correct Answer Incorrect Answer
    D Government expenditure Correct Answer Incorrect Answer

    Solution

    The Harrod-Domar model explains growth as: g=s/k Where g = growth rate, s = savings rate, k = capital-output ratio. Higher savings or more efficient use of capital (lower k) leads to higher growth. This model emphasizes investment as the driver of growth.

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