ENTREPRENEURSHIP

Detailed explanation-1: -Kaldor postulates the “technical progress function”, which shows a relationship between the growth of capital and productivity, incorporating the influence of both the factors. Where the capital-output ratio will depend upon the relationship of the growth of capital and the growth of productivity.

Detailed explanation-2: -The model was developed by economists Roy Harrod and Evsey Domar in the 1930s and 1940s. The basic idea of the Harrod-Domar model is that economic growth depends on the amount of capital that is available for investment, and that the rate of capital accumulation is proportional to the rate of savings.

Detailed explanation-3: -The Harrod-Domar models of economic growth are based on the experiences of advanced capitalist economies to analyse the requirements of steady growth in such economy. The Harrod-Domar economic growth model stresses the importance of savings and investment as key determinants of growth.

Detailed explanation-4: -The three most important economic growth theories are the classical theory, neo-classical theory, and modern theory of economic study. The most influential economic growth theorists are Adam Smith (classical growth), Robert Solow and Trevor Swan (neo-classical growth), and Roy Harrod and Evsey Domar (modern growth).