In Harrod’s model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at the warranted rate with
A. continually increasing unemployment
B. a constant rate of unemployment
C. continually decreasing unemployment
D. None of the above
Answer:A
In Harrod’s model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at the warranted rate with
A. continually increasing unemployment B. a constant rate of unemployment C. continually decreasing unemployment D. None of the above