Economics · Growth Models
Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R): Assertion (A): In the Harrod-Domar model, warranted growth ensures full capacity utilization. Reason (R): Warranted growth equals natural growth automatically in equilibrium. In light of the above statements, choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is false, but R is true.
- 2A is true, but R is false.✓
- 3Both A and R are true, but R is not the correct explanation of A.
- 4Both A and R are true, and R is the correct explanation of A.
Correct answer
A is true, but R is false.
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