Discuss whether the following statements are true or false. (a) The HarrodDomar model states that a countrys
Question:
Discuss whether the following statements are true or false.
(a) The Harrod–Domar model states that a country’s per capita growth rate depends on its rate of savings, whereas the Solow model states that it does not.
(b) According to the Harrod–Domar model, if the capital–output ratio in a country is high, that country will grow faster.
(c) To understand if there is convergence in the world economy, we must study countries that are currently rich.
(d) Middle-income countries are more likely to change their relative position in world rankings of GNP than poor or rich countries.
(e) In the Solow model, a change in the population growth rate has no effect on the long-run rate of per capita growth.
(f) In the Solow model, output per head goes down as capital per head increases, because of diminishing returns.
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