Question

The first five year plan was based on _____ framework.

• A. High Risk Model
• B. Harrod Domestic Model
• C. High Domar Model
• D. Harrod Domar Model

Answer 1

The correct option is D Harrod Domar Model

First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector. The First Five year plan was based on the Harrod–Domar model with few modifications. The most important feature of this phase was active role of state in all economic sectors. The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and of capital. It suggests that there is no natural reason for an economy to have balanced growth. The model was developed independently by Roy F.