economics hard True/False

The Harrod-Domar growth model emphasizes technological progress as the primary driver of long-term economic growth, whereas the Solow model focuses solely on savings rates.

  1. True
  2. False

Answer: False

The reverse is true. The Harrod-Domar model posits that economic growth depends heavily on the national savings rate and the capital-output ratio, assuming fixed technology. The Solow-Swan model introduced exogenous technological progress as the critical factor for sustaining long-term per capita growth beyond mere capital accumulation.

Topic Macroeconomics - Growth Models
Exam Relevance UPSC Prelims, SSC CGL
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