Economics · Growth Models
In Harrod-Domar growth models, the condition of 'overproduction' implies that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Actual growth rate is less than the warranted growth rate
- 2Actual growth rate is equal to the warranted growth rate
- 3Actual growth rate is greater than the warranted growth rate✓
- 4No production activity is taking place in the economy
Correct answer
Actual growth rate is greater than the warranted growth rate
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