In the context of economic growth, the Harrod-Domar model emphasises the role of:
A. Natural resources only
B. Labour force growth only
C. Technological progress only
D. Savings and capital-output ratio
Answer: Option D
Solution (By JKSSB Mock Tests)
The Harrod-Domar model states that the growth rate of an economy depends on the savings rate and the capital-output ratio (or inverse of the productivity of capital).
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