Harrod's Growth model is given as under:
\(\begin{array}{ll} \mathrm{S}_{\mathrm{t}}=\alpha \mathrm{Y}_{\mathrm{t}} & 0<\alpha<1 \\ \mathrm{I}_{\mathrm{t}}=\beta\left[\mathrm{Y}_{\mathrm{t}}-\mathrm{Y}_{\mathrm{t}-1}\right] & \beta>0 \\ \mathrm{~S}_{\mathrm{t}}=\mathrm{I}_{\mathrm{t}} & \end{array}\)
where St = Savings, Yt = Income, lt = Investment, t = time
In this model for economic growth, the condition for economic growth is
1
\(\frac{\beta}{\beta-\alpha}>1\)
2
\(\frac{\beta}{\beta-\alpha}<0\)
3
\(\frac{\beta}{\alpha}>0\)
4
\(\frac{\beta}{\alpha-\beta}>0\)