RBI GRADE B NOV WEEKLY TEST 16 - Growth & Development

1 / 10

1. Harrod Domar Growth model could be associated with

Neo Classical Growth Model

Classical Growth Model

Both A and B

None of above

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2. Harrod’s growth model is based upon three growth rates. Which growth rate is related to businessmen’s behavior?

Actual Growth Rate

Warranted Growth Rate

Natural Growth Rate

It is not related in any way

3 / 10

3. Given below are two statements labelled as Statement 1 and Statement In context of basic solow model, which of the following statement does hold true?

Statement 1- There is single k* at which steady state condition is satisfied. An economy at steady state will stay there.

Statement 2- Steady state represents only short run equilibrium of the economy.

Only Statement 1 is true

Only Statement 2 is true

Both statement 1 and statement 2 are true

Both statement 1 and statement 2 are false

4 / 10

4. Suppose Y= , s=20%, 6 %. Find out per capita output y, considering k to be at steady

5

15

20

25

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5. Which of the following indicators is not included in the calculation of the Human Development Index (HDI)?

Life expectancy at birth

Gross National Income per capita

Access to clean water and sanitation

Mean years of schooling

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6. Given below are two statements labelled as Statement 1 and Statement 2. Choose the appropriate code.

Statement 1- Lower the K/Y ratio implies lower economic growth.

Statement 2- Higher saving ratio implies higher abstinence from the current consumption.

Only statement 1 is true

Only statement 2 is true

Both statement 1 and statement 2 are true

Both statement 1 and statement 2 are false

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7. Given below is a list of four growth In Harrod Domar’s knife-edge, the problem of macroeconomic stability is associated with the balance between

Actual growth rate

Warranted growth rate

Natural growth rate

Desired growth rate

a and b

b and c

c and d

a and d

8 / 10

8. Assume rate of depreciation (6) is constant and population grows exponentially at rate n, then in context of Solow Model, Steady State will be at

sf(k) = 6

sf(k) = 6k

sf(k) — 6 = nk

sf(k) = (θ+n)k

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9. The property of catch up in solow model is better known as

Residual

Factor productivity

Convergence

Solowian Index

10 / 10

10. Which country is ranked highest among India’s neighboring countries in the Global Gender Gap Report 2023?