Growth Model_Please solve this question

Posted by A.Q. on Nov 13, 2017; 9:11am
URL: http://discussion-forum.276.s1.nabble.com/Growth-Model-Please-solve-this-question-tp7608287.html

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