Question

Highlight the signilicance of the notion

of capitai-output ratio.​

Answer 1

Answer:

Capital output ratio is the amount of capital needed to produce one unit of output. For example, suppose that investment in an economy, investment is 32% (of GDP), and the economic growth corresponding to this level of investment is 8%.

Answer 2

Answer:

Hey mate!!

here is Ur answer

The concept of capital output ratio expresses the relationship between the value of capital invested and the value of output. Capital output ratio is the amount of capital needed to produce one unit of output. ... Capital output ratio is 32/8 or 4. In other words, to produce one unit of output, 4 unit of capital is needed.

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