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Growth Model_Please solve this question

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Growth Model_Please solve this question

A.Q.
Suppose in an economy the ratio of consumption expenditure to aggregate income is
constant at 0.75, the rate of growth of the labor force is constant at 2% per annum and
the ICOR is constant at 6-year. The normal warranted rate of growth (percent per annum) for the economy equal to?
(a) 0.33
(b) 2.19
(c) 4.17
(d) 5.83
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Re: Growth Model_Please solve this question

soimmoi
This post was updated on Nov 16, 2017; 1:15pm.
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Re: Growth Model_Please solve this question

A.Q.
Don't know the correct answer.
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Re: Growth Model_Please solve this question

soimmoi
hey! it's c
ICOR = savings/ incremental capital o/p ratio
6 = 0.25/ g
g = 4.17