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according to harrod domar model the level of savings remain constant to the proportion of income.
Harrod-Domar model assumes a simple production function y=f(k), where k is capital

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Q: How does the Harrod-Domar growth model differ from the Neo-classical growth mode?
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What is Solow?

Solow is a swann model. Long term economic growth from neoclassical ages are used to compare long term economical complications of present.


What is the main difference between Harrod-Domar growth model and Robert Solow growth model?

difference between horred-domer and solow model


What is the Solow growth model?

"The Solow growth model shows how saving, population growth, and technological progress affect the level of an economy's output and its growth over time" -N. Gregory Mankiw Macroeconomics 6th edition The solow growth model basically shows that an increase in population rate results in a decrease in output (consumption) per person.


What are the assumptions of Harrod-Domar growth model?

It assumes that savings and investment are all that is needed for growth. No diminishing returns to capital is an implicit assumption.


The constant growth model takes into consideration the capital gains earned on a stock?

This question was originally listed as an answer option. The question was "Which of the following statements is most correct." This was the most correct of the following choices.The constant growth model takes into consideration the capital gains earned on a stock.It is appropriate to use the constant growth model to estimate stock value even if the growth rate never becomes constant.Two firms with the same dividend and growth rate must also have the same stock price.Statements 1 and 3 are correctAll of the statements above are correct.Answer 1 was the most correct of the choices.

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