Introduction to Economics 2 Deneme Sınavı Sorusu #754694

According to Harrod-Domar Growth model what is the reason for the time period of t, It = St?

The economy is a closed one

Some firms are able to invest

Households are for labor only

Labor’s quality is low

Capital flow is low

Yanıt Açıklaması:

In a two sector economy consisting of households and firms, the national income equation in the model for the time period of t is written as:

Yt = Ct + St (8.4)

where Yt=GDP, Ct=Consumption and St=Saving. Since the economy is a closed one, the equilibrium in this simple closed economy requires investment is equal to savings, which is shown in equation (8.5) as:

It = St

PAYLAŞ:

SORUNUN CEVABI: A

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