may 2014 IAI Q 30

Discussion in 'CT7' started by SURESH SHARMA, May 2, 2015.

  1. SURESH SHARMA

    SURESH SHARMA Member

    Please provide the solution

    if the capital output ratio is 5 and the proportion of national income invested is 10 % the country growth rate is


    regards
    Suresh sharma
     
    SURESH SHARMA, May 2, 2015
    #1
  2. SURESH SHARMA

    SURESH SHARMA Member

    dear all ,

    I got the answer it will be solved with the formula

    g=I/k where I is the investment and k is the capital output ratio


    growth =10/5 = 2 %

    thanks
     
    SURESH SHARMA, May 7, 2015
    #2
  3. Whippet1

    Whippet1 Member

    Yes, this formula is on p423 in the 6th Edition of the Economics for Business textbook and in Module 17 of the ActEd Course Notes.
     
    Whippet1, May 12, 2015
    #3

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