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International Political Economy
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Harrod-Domar model
Autor: Angelie BayabanRespuesta:
Growth model used in development economics that states an economy’s growth rate is dependent on the level of saving and the capital-output ratio. Explains growth in terms of the level of savings and productivity of capital. This model of economic growth has been applied to the problems of economic development. This model also explains three types of growth: warranted growth, actual growth rate, and natural growth.
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