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a) Explain, in words (not equations) the key assumptions of the Harrod-Domar model. (2 marks) b) State the equation for per capita growth in the
a) Explain, in words (not equations) the key assumptions of the Harrod-Domar model. (2 marks) b) State the equation for per capita growth in the basic, standard Harrod-Domar model. Label each of the variables. (3 marks) c) What is the most important factor for long run per capita income growth in the Harrod-Domar model? (1 mark) d) What is the connection between the answer to (c) and poverty traps in developing countries? (2 marks)
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