[amp_mcq option1=”Real rate” option2=”Natural rate” option3=”Deprieved rate” option4=”None of the above” correct=”option1″]<\/p>\n
The correct answer is: A. Real rate<\/strong><\/p>\n The Harrod-Domar model is a macroeconomic model of economic growth. It was developed by Roy Harrod and Evsey Domar in the 1940s. The model assumes that the economy is in a state of equilibrium, and that the rate of growth is determined by the rate of investment.<\/p>\n The model also assumes that the population is growing at a constant rate. This means that the labor force is growing at a constant rate, and that the capital stock is growing at a constant rate.<\/p>\n The real rate of growth is the rate of growth of the economy in real terms, i.e., after adjusting for inflation. The natural rate of growth is the rate of growth of the economy in the long run, i.e., the rate of growth that is consistent with full employment.<\/p>\n The deprived rate is a term that is not used in economics.<\/p>\n In the Harrod-Domar model, the real rate of growth is affected by the population growth rate. This is because the population growth rate affects the size of the labor force, and the size of the labor force affects the amount of output that can be produced.<\/p>\n If the population growth rate is high, then the labor force will be large, and the amount of output that can be produced will be high. This will lead to a high real rate of growth.<\/p>\n If the population growth rate is low, then the labor force will be small, and the amount of output that can be produced will be low. This will lead to a low real rate of growth.<\/p>\n In conclusion, the real rate of growth is affected by the population growth rate in the Harrod-Domar model.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Real rate” option2=”Natural rate” option3=”Deprieved rate” option4=”None of the above” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-55368","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n